MassMutual
Corporate Investors
Report for the
Nine Months Ended September 30, 2009
[LOGO]
ADVISER
Babson Capital Management LLC
1500 Main Street, P.O. Box 15189
Springfield, Massachusetts 01115-5189
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
KPMG LLP
Boston, Massachusetts 02110
COUNSEL TO THE TRUST
Ropes & Gray LLP
Boston, Massachusetts 02110
CUSTODIAN
Citibank, N.A.
New York, New York 10043
TRANSFER AGENT & REGISTRAR
Shareholder Financial Services, Inc.
P.O. Box 173673
Denver, Colorado 80217-3673
1-800-647-7374
INTERNET WEBSITE
www.babsoncapital.com/mci
MassMutual Corporate Investors
c/o Babson Capital Management LLC
[LOGO] 1500 Main Street, Suite 2200
Springfield, Massachusetts 01115
(413) 226-1516
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INVESTMENT OBJECTIVE AND POLICY
MassMutual Corporate Investors (the "Trust") is a closed-end management
investment company, first offered to the public in 1971, whose shares are traded
on the New York Stock Exchange under the trading symbol "MCI". The Trust's share
price can be found in the financial section of most newspapers as "MassCp" or
"MassMuInv" under either the New York Stock Exchange listings or Closed-End Fund
Listings.
The Trust's investment objective is to maintain a portfolio of securities
providing a fixed yield and at the same time offering an opportunity for capital
gains. The Trust's principal investments are privately placed, below-investment
grade, longterm debt obligations with equity features such as common stock,
warrants, conversion rights, or other equity features and, occasionally,
preferred stocks. The Trust typically purchases these investments, which are not
publicly tradable, directly from their issuers in private placement
transactions. These investments are typically mezzanine debt instruments with
accompanying private equity securities made to small or middle market companies.
In addition, the Trust may temporarily invest, subject to certain limitations,
in marketable investment grade debt securities, other marketable debt securities
(including high yield securities) and marketable common stocks. Below investment
grade or high yield securities have predominantly speculative characteristics
with respect to the capacity of the issuer to pay interest and repay principal.
Babson Capital Management LLC ("Babson Capital") manages the Trust on a total
return basis. The Trust distributes substantially all of its net income to
shareholders each year. Accordingly, the Trust pays dividends to shareholders in
January, May, August, and November. The Trust pays dividends to its shareholders
in cash, unless the shareholder elects to participate in the Dividend
Reinvestment and Share Purchase Plan.
FORM N-Q
The Trust files its complete schedule of portfolio holdings with the U.S.
Securities and Exchange Commission ("SEC") for the first and third quarters of
each fiscal year on Form N-Q. This information is available (i) on the SEC's
website at http:// www.sec.gov; and (ii) at the SEC's Public Reference Room in
Washington, DC (which information on their operation may be obtained by calling
1-800-SEC-0330). A complete schedule of portfolio holdings as of each
quarter-end is available upon request by calling, toll-free, 866-399-1516.
PROXY VOTING POLICIES & Procedures; PROXY VOTING RECORD
The Trustees of the Trust have delegated proxy voting responsibilities relating
to the voting of securities held by the Trust to Babson Capital. A description
of Babson Capital's proxy voting policies and procedures is available (1)
without charge, upon request, by calling, toll-free 866-399-1516; (2) on the
Trust's website: http://www.babsoncapital.com/mci; and (3) on the SEC's website
at http://www.sec.gov. Information regarding how the Trust voted proxies
relating to portfolio securities during the most recent 12-month period ended
June 30 is available (1) on the Trust's website: http://www.babsoncapital.
com/mci; and (2) on the SEC's website at http://www.sec.gov.
MCI
Listed
NYSE
MassMutual Corporate Investors
TO OUR SHAREHOLDERS
October 31, 2009
We are pleased to present the September 30, 2009 Quarterly Report of MassMutual
Corporate Investors (the "Trust").
The Board of Trustees declared a quarterly dividend of 54 cents per share,
payable on November 13, 2009 to shareholders of record on October 26, 2009. The
Trust paid a 54 cent per share dividend for the preceding quarter.
During the third quarter, the net assets of the Trust increased to $218,732,783
or $23.41 per share compared to $212,219,120 or $22.77 per share on June 30,
2009. This translates into a 5.23% total return for the quarter, based on the
change in the Trust's net assets assuming the reinvestment of all dividends.
Longer term, the Trust returned 1.05%, 3.44%, 10.40%, 10.98%, and 14.03% for the
1-, 3-, 5-, 10-, and 25-year time periods, respectively, based on the change in
the Trust's net assets assuming the reinvestment of all dividends. The Trust
earned 51 cents per share of net investment income for the quarter, compared to
49 cents per share in the previous quarter.
The Trust's share price increased 3.7% during the third quarter, from $24.00 per
share to $24.89 per share. The Trust's market price of $24.89 per share equates
to a 6.3% premium over the September 30, 2009 net asset value per share of
$23.41. The Trust's average quarter-end premium for the 3, 5 and 10-year periods
was 7.6%, 9.1% and 5.7%, respectively. U.S. equity markets, as approximated by
the Russell 2000 Index, increased 19.28% for the quarter. U.S. high yield fixed
income markets, as approximated by the Barclays Capital U.S. Corporate High
Yield Index increased 14.22% for the quarter.
During the third quarter, banks and other senior debt providers finally began to
make more capital available to finance middle market buyout transactions. As a
result, the deal flow available to the Trust increased steadily as the quarter
progressed. The Trust closed two new private placement investments and two
"follow-on" investments in existing portfolio companies during the quarter. The
total amount invested by the Trust in these transactions was approximately $5.7
million. The two new investments were in International Offshore Services LLC and
Northwest Mailing Services, Inc., while the two follow-on investments were in
NetShape Technologies, Inc. and Telecorps Holdings, Inc. (A brief description of
these investments can be found in the Consolidated Schedule of Investments.) We
are pleased with the quality of the recent additions to the Trust's portfolio,
as new investments continue to be more conservatively structured and
attractively priced than has been the market norm for the past several years.
Transaction activity has remained fairly strong in the early part of the fourth
quarter, and our current backlog of deals bodes well for fourth quarter new
investment activity.
The weak economy continues to negatively impact the ability of many of our
existing portfolio companies to service their debt. We are spending considerable
time working closely with the transaction sponsors and the management teams of
these companies to remedy these situations. We expect these activities to
continue for the next several quarters. One of our portfolio companies, Radiac
Abrasives, Inc., was sold during the quarter with the Trust realizing a gain on
its investment. While realization activity has been slow during the first three
quarters of the year, there are signs that activity levels are increasing.
Thank you for your continued interest in and support of MassMutual Corporate
Investors.
Sincerely,
/s/ Michael L. Klofas
Michael L. Klofas
President
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PORTFOLIO COMPOSITION AS OF 9/30/09 *
[PIE CHART APPEARS HERE]
PRIVATE / 144A HIGH PUBLIC HIGH YIELD
YIELD DEBT DEBT
66.0% 18.9%
PRIVATE / RESTRICTED PUBLIC EQUITY
EQUITY 1.4%
12.4%
CASH & SHORT TERM
INVESTMENTS
1.3%
* Based on market value of total investments (including cash)
Cautionary Notice: Certain statements contained in this report may be "forward
looking" statements. Investors are cautioned not to place undue reliance on
forward-looking statements, which speak only as of the date on which they are
made and which reflect management's current estimates, projections, expectations
or beliefs, and which are subject to risks and uncertainties that may cause
actual results to differ materially. These statements are subject to change at
any time based upon economic, market or other conditions and may not be relied
upon as investment advice or an indication of the Trust's trading intent.
References to specific securities are not recommendations of such securities,
and may not be representative of the Trust's current or future investments. We
undertake no obligation to publicly update forward looking statements, whether
as a result of new information, future events, or otherwise.
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1
CONSOLIDATED STATEMENT OF ASSETS AND LIABILITIES
SEPTEMBER 30, 2009
(UNAUDITED)
ASSETS:
Investments
(See Consolidated Schedule of Investments)
Corporate restricted securities at fair value
(Cost - $222,852,695) $ 190,996,938
Corporate public securities at market value
(Cost - $55,157,948) 49,204,305
-------------
240,201,243
Cash 3,127,264
Interest and dividends receivable 6,194,485
Receivable for investments sold 277,685
Prepaid taxes 250,000
Other assets 6,325
-------------
TOTAL ASSETS 250,057,002
-------------
LIABILITIES:
Payable for investments purchased 260,578
Investment advisory fee payable 683,540
Note payable 30,000,000
Interest payable 202,105
Accrued expenses 177,996
-------------
TOTAL LIABILITIES 31,324,219
-------------
TOTAL NET ASSETS $ 218,732,783
=============
NET ASSETS:
Common shares, par value $1.00 per share;
an unlimited number authorized $ 9,343,143
Additional paid-in capital 113,445,054
Retained net realized gain on investments, prior years 127,688,004
Undistributed net investment income 7,839,818
Accumulated net realized loss on investments (1,773,836)
Net unrealized depreciation of investments (37,809,400)
-------------
TOTAL NET ASSETS $ 218,732,783
=============
COMMON SHARES ISSUED AND OUTSTANDING 9,343,143
=============
NET ASSET VALUE PER SHARE $ 23.41
=============
See Notes to Consolidated Financial Statements
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2
CONSOLIDATED STATEMENT OF OPERATIONS MassMutual Corporate Investors
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2009
(UNAUDITED)
INVESTMENT INCOME:
Interest $ 18,340,079
Dividends 24,392
Other 38,388
-------------
TOTAL INVESTMENT INCOME 18,402,859
-------------
EXPENSES:
Investment advisory fees 1,972,492
Interest 1,188,000
Trustees' fees and expenses 163,800
Professional fees 129,500
Reports to shareholders 90,000
Custodian fees 21,000
Transfer agent/registrar's expenses 18,000
Other 90,011
-------------
TOTAL EXPENSES 3,672,803
-------------
INVESTMENT INCOME - NET 14,730,056
-------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized loss on investments before taxes (24,729)
Income tax expense (11,170)
-------------
Net realized loss on investments after taxes (35,899)
Net change in unrealized depreciation of investments 5,394,388
-------------
NET GAIN ON INVESTMENTS 5,358,489
-------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 20,088,545
=============
See Notes to Consolidated Financial Statements
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3
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2009
(UNAUDITED)
NET INCREASE IN CASH:
Cash flows from operating activities:
Purchases/Proceeds/Maturities from short-term portfolio
securities, net $ 6,251,054
Purchases of portfolio securities (27,680,645)
Proceeds from disposition of portfolio securities 25,252,848
Interest, dividends, and other income received 14,867,618
Interest expense paid (1,188,000)
Operating expenses paid (2,453,137)
Income taxes paid (27,170)
-------------
NET CASH PROVIDED BY OPERATING ACTIVITIES 15,022,568
-------------
Cash flows from financing activities:
Cash dividends paid from net investment income (15,097,605)
Receipts for shares issued on reinvestment of dividends 565,789
-------------
NET CASH USED FOR FINANCING ACTIVITIES (14,531,816)
-------------
NET INCREASE IN CASH 490,752
Cash - beginning of period 2,636,512
-------------
CASH - END OF PERIOD $ 3,127,264
=============
RECONCILIATION OF NET INCREASE IN NET ASSETS TO NET
CASH PROVIDED BY OPERATING ACTIVITIES:
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 20,088,545
-------------
Increase in investments (2,410,030)
Increase in interest and dividends receivable (2,746,992)
Increase in receivable for investments sold (92,268)
Increase in other assets (6,325)
Increase in payable for investments purchased 257,000
Increase in investment advisory fee payable 33,092
Increase in accrued expenses 4,900
Decrease in accrued taxes payable (16,000)
Decrease in other payables (89,354)
-------------
TOTAL ADJUSTMENTS TO NET ASSETS FROM OPERATIONS (5,065,977)
-------------
NET CASH PROVIDED BY OPERATING ACTIVITIES $ 15,022,568
=============
See Notes to Consolidated Financial Statements
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4
CONSOLIDATED STATEMENTS MassMutual Corporate Investors
OF CHANGES IN NET ASSETS
For the nine
months ended For the
09/30/09 year ended
(Unaudited) 12/31/08
------------- -------------
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Investment income - net $ 14,730,056 $ 21,472,294
Net realized loss on investments (35,899) (2,459,420)
Net change in unrealized depreciation of investments 5,394,388 (44,140,369)
------------- -------------
Net increase (decrease) in net assets resulting from operations 20,088,545 (25,127,495)
Increase from common shares issued on reinvestment of dividends
Common shares issued (2009 - 23,634; 2008 - 81,890) 565,789 2,186,860
Dividends to shareholders from:
Net investment income (2009 - $1.08 per share;
2008 - $2.16 per share) (10,065,070) (20,078,868)
------------- -------------
TOTAL INCREASE (DECREASE) IN NET ASSETS 10,589,264 (43,019,503)
NET ASSETS, BEGINNING OF YEAR 208,143,519 251,163,022
------------- -------------
NET ASSETS, END OF PERIOD/YEAR (including undistributed net
investment income of $7,839,818 and $3,174,832, respectively) $ 218,732,783 $ 208,143,519
============= =============
See Notes to Consolidated Financial Statements
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5
CONSOLIDATED SELECTED FINANCIAL HIGHLIGHTS
SELECTED DATA FOR EACH SHARE OF BENEFICIAL INTEREST OUTSTANDING:
For the nine months For the years ended December 31,
ended 09/30/2009 -----------------------------------------------------------------
(Unaudited) 2008 2007 2006 2005 2004
--------- --------- --------- --------- --------- ---------
Net asset value:
Beginning of year $ 22.33 $ 27.19 $ 27.51 $ 26.06 $ 24.34 $ 21.84
--------- --------- --------- --------- --------- ---------
Net investment income (a) 1.58 2.31 2.56 2.27 2.03 2.00
Net realized and unrealized
gain (loss) on investments 0.57 (5.02) (0.35) 1.62 1.96(b) 2.64
--------- --------- --------- --------- --------- ---------
Total from investment operations 2.15 (2.71) 2.21 3.89 3.99 4.64
--------- --------- --------- --------- --------- ---------
Dividends from net investment
income to common shareholders (1.08) (2.16) (2.57) (2.47) (2.11) (2.16)
Dividends from net realized gain
on investments to common shareholders -- -- -- (0.01) (0.18) --
Increase from dividends reinvested 0.01 0.01 0.04 0.04 0.02 0.02
--------- --------- --------- --------- --------- ---------
Total dividends (1.07) (2.15) (2.53) (2.44) (2.27) (2.14)
--------- --------- --------- --------- --------- ---------
Net asset value: End of period/year $ 23.41 $ 22.33 $ 27.19 $ 27.51 $ 26.06 $ 24.34
--------- --------- --------- --------- --------- ---------
Per share market value:
End of period/year $ 24.89 $ 19.25 $ 30.20 $ 34.89 $ 30.05 $ 28.50
========= ========= ========= ========= ========= =========
Total investment return
Net asset value(c) 9.98% (10.34%) 8.72% 18.06% 20.04% 22.76%
Market value 35.52% (30.44%) (8.78%) 29.04% 16.95% 36.10%
Net assets (in millions):
End of period/year $ 218.73 $ 208.14 $ 251.16 $ 251.69 $ 236.28 $ 218.51
Ratio of operating expenses
to average net assets 1.58%(d) 1.49% 1.55% 1.43% 1.78% 1.93%
Ratio of interest expense
to average net assets 0.75%(d) 0.67% 0.59% 0.60% 0.73% 0.77%
Ratio of income tax expense
to average net assets(e) 0.01%(d) 0.00% 0.35% 2.46% 2.84% 0.69%
Ratio of total expenses before custodian fee
reduction to average net assets(e) 2.34%(d) 2.16% 2.49% 4.53% 5.36% 3.39%
Ratio of net expenses after custodian fee
reduction to average net assets(e) 2.34%(d) 2.16% 2.49% 4.49% 5.35% 3.39%
Ratio of net investment income
to average net assets 9.37%(d) 9.01% 9.17% 8.19% 7.98% 8.68%
Portfolio turnover 11% 32% 44% 35% 35% 53%
(a) Calculated using average shares.
(b) Amount includes $0.19 per share in litigation proceeds.
(c) Net asset value return represents portfolio returns based on change in the Trust's net asset value assuming the reinvestment of
all dividends and distributions which differs from the total investment return based on the Trust's market value due to the
difference between the Trust's net asset value and the market value of its shares outstanding; past performance is no guarantee
of future results.
(d) Annualized
(e) As additional information, this ratio is included to reflect the taxes paid on retained long-term gains. These taxes paid are
netted against realized capital gains in the Statement of Operations. The taxes paid are treated as deemed distributions and a
credit for the taxes paid is passed on to the shareholders.
Senior borrowings:
Total principal amount (in millions) $ 30 $ 30 $ 30 $ 20 $ 20 $ 29
Asset coverage per $1,000 of indebtedness $ 8,291 $ 7,938 $ 9,372 $ 13,584 $ 12,814 $ 8,535
See Notes to Consolidated Financial Statements
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6
MassMutual Corporate Investors
CONSOLIDATED SCHEDULE OF INVESTMENTS
September 30, 2009
(Unaudited)
Principal Amount
Shares, Units
or Ownership Acquisition
CORPORATE RESTRICTED SECURITIES - 87.32%:(A) Percentage Date Cost Fair Value
------------ -------- ------------ ------------
PRIVATE PLACEMENT INVESTMENTS - 82.27%
A H C HOLDING COMPANY, INC.
A designer and manufacturer of boilers and water heaters for the commercial sector.
15% Senior Subordinated Note due 2015 $ 2,460,057 11/21/07 $ 2,408,230 $ 2,509,258
Limited Partnership Interest (B) 23.16% int. 11/21/07 224,795 213,973
------------ ------------
2,633,025 2,723,231
------------ ------------
A S A P INDUSTRIES LLC
A designer and manufacturer of components used on oil and natural gas wells.
12.5% Senior Subordinated Note due 2015 $ 1,134,594 12/31/08 985,537 1,168,632
Limited Liability Company Unit Class A-2 (B) 1,276 uts. 12/31/08 140,406 133,386
Limited Liability Company Unit Class A-3 (B) 1,149 uts. 12/31/08 126,365 11
------------ ------------
1,252,308 1,302,029
------------ ------------
A T I ACQUISITION COMPANY
A for-profit post-secondary school serving students in Texas, Florida and Arizona.
12% Senior Subordinated Note due 2012 $ 2,125,000 04/08/04 2,125,000 2,125,000
Warrant, exercisable until 2012, to purchase
preferred stock at $.01 per share (B) 13 shs. 11/16/07 -- 24,188
Warrant, exercisable until 2012, to purchase
common stock at $.02 per share (B) 2,323 shs. 04/08/04 -- 2,871,084
------------ ------------
2,125,000 5,020,272
------------ ------------
A W X HOLDINGS CORPORATION
A provider of aerial equipment rental, sales and repair services to non-residential construction and maintenance contractors
operating in the State of Indiana.
10.5% Senior Secured Term Note due 2014 $ 735,000 05/15/08 720,300 693,412
13% Senior Subordinated Note due 2015 $ 735,000 05/15/08 666,108 676,390
Common Stock (B) 105,000 shs. 05/15/08 105,000 --
Warrant, exercisable until 2015, to purchase
common stock at $.01 per share (B) 36,923 shs. 05/15/08 62,395 --
------------ ------------
1,553,803 1,369,802
------------ ------------
ADVANCED TECHNOLOGIES HOLDINGS
A provider of factory maintence services to industrial companies.
15% Senior Subordinated Note due 2013 $ 2,150,251 12/27/07 2,107,357 2,193,256
Preferred Stock (B) 1,031 shs. 12/27/07 510,000 472,253
------------ ------------
2,617,357 2,665,509
------------ ------------
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7
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)
September 30, 2009
(Unaudited)
Principal Amount
Shares, Units
or Ownership Acquisition
CORPORATE RESTRICTED SECURITIES:(A)(Continued) Percentage Date Cost Fair Value
------------ -------- ------------ ------------
AERO HOLDINGS, INC.
A provider of geospatial services to corporate and government clients.
10.5% Senior Secured Term Note due 2014 $ 1,627,500 03/09/07 $ 1,603,088 $ 1,677,233
14% Senior Subordinated Note due 2015 $ 1,260,000 03/09/07 1,148,514 1,272,600
Common Stock (B) 262,500 shs. 03/09/07 262,500 268,724
Warrant, exercisable until 2015, to purchase
common stock at $.01 per share (B) 66,116 shs. 03/09/07 111,527 67,684
------------ ------------
3,125,629 3,286,241
------------ ------------
ALL CURRENT HOLDING COMPANY
A specialty re-seller of essential electrical parts and components primarily serving wholesale distributors.
12% Senior Subordinated Note due 2015 $ 1,140,317 09/26/08 1,043,507 1,162,564
Common Stock (B) 1,347 shs. 09/26/08 134,683 133,202
Warrant, exercisable until 2018, to purchase
common stock at $.01 per share (B) 958 shs. 09/26/08 87,993 94,735
------------ ------------
1,266,183 1,390,501
------------ ------------
AMERICAN HOSPICE MANAGEMENT HOLDING LLC
A for-profit hospice care provider in the United States.
12% Senior Subordinated Note due 2013 $ 3,187,495 * 3,033,665 3,187,495
Preferred Class A Unit (B) 3,223 uts. ** 322,300 498,915
Preferred Class B Unit (B) 1,526 uts. 06/09/08 152,626 183,416
Common Class B Unit (B) 30,420 uts. 01/22/04 1 17,661
Common Class D Unit (B) 6,980 uts. 09/12/06 1 4,052
------------ ------------
3,508,593 3,891,539
------------ ------------
APEX ANALYTIX HOLDING CORPORATION
A provider of audit recovery and fraud detection services and software to commercial and retail businesses in the U.S. and Europe.
12.5% Senior Subordinated Note due 2016 $ 1,912,500 04/28/09 1,577,838 1,969,875
Preferred Stock Series B (B) 3,065 shs. 04/28/09 306,507 31
Common Stock (B) 1,366 shs. 04/28/09 1,366 14
------------ ------------
1,885,711 1,969,920
------------ ------------
ARROW TRU-LINE HOLDINGS, INC.
A manufacturer of hardware for residential and commercial overhead garage doors in North America.
12% Senior Subordinated Note due 2012 $ 1,627,660 05/18/05 1,573,066 1,383,511
Common Stock (B) 497 shs. 05/18/05 497,340 --
Warrant, exercisable until 2012, to purchase
common stock at $.01 per share (B) 130 shs. 05/18/05 112,128 --
------------ ------------
2,182,534 1,383,511
------------ ------------
* 01/22/04 and 06/09/08.
** 01/22/04 and 09/12/06.
--------------------------------------------------------------------------------------------------------------------------------
8
MassMutual Corporate Investors
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)
September 30, 2009
(Unaudited)
Principal Amount
Shares, Units
or Ownership Acquisition
CORPORATE RESTRICTED SECURITIES:(A)(Continued) Percentage Date Cost Fair Value
------------ -------- ------------ ------------
BRAVO SPORTS HOLDING CORPORATION
A designer and marketer of niche branded consumer products including canopies, trampolines, in-line skates, skateboards, and
urethane wheels.
12.5% Senior Subordinated Note due 2014 $ 2,281,593 06/30/06 $ 2,170,057 $ 2,212,610
Preferred Stock Class A (B) 879 shs. 06/30/06 268,121 87,459
Common Stock (B) 1 sh. 06/30/06 286 --
Warrant, exercisable until 2014, to purchase
common stock at $.01 per share (B) 309 shs. 06/30/06 92,102 30,737
------------ ------------
2,530,566 2,330,806
------------ ------------
C D N T, INC.
A value-added converter and distributor of specialty pressure sensitive adhesives, foams, films, and foils.
10.5% Senior Secured Term Note due 2014 $ 750,872 08/07/08 735,855 705,030
12.5% Senior Subordinated Note due 2015 $ 750,872 08/07/08 685,141 681,017
Common Stock (B) 73,256 shs. 08/07/08 73,256 --
Warrant, exercisable until 2018, to purchase
common stock at $.01 per share (B) 57,600 shs. 08/07/08 57,689 --
------------ ------------
1,551,941 1,386,047
------------ ------------
CAPITAL SPECIALTY PLASTICS, INC.
A producer of desiccant strips used for packaging pharmaceutical products.
Common Stock (B) 109 shs. * 503 771,524
------------ ------------
CLOUGH, HARBOUR AND ASSOCIATES
An engineering service firm that is located in Albany, NY.
12.25% Senior Subordinated Note due 2015 $ 2,400,000 12/02/08 2,225,100 2,472,000
Preferred Stock (B) 277 shs. 12/02/08 276,900 263,055
------------ ------------
2,502,000 2,735,055
------------ ------------
COEUR, INC.
A producer of proprietary, disposable power injection syringes.
12% Senior Subordinated Note due 2016 $ 1,214,286 10/10/08 1,098,929 1,250,715
Common Stock (B) 607 shs. 10/10/08 60,714 57,678
Warrant, exercisable until 2018, to purchase
common stock at $.01 per share (B) 934 shs. 10/10/08 91,071 9
------------ ------------
1,250,714 1,308,402
------------ ------------
CONNECTICUT ELECTRIC, INC.
A supplier and distributor of electrical products sold into the retail and wholesale markets.
12% Senior Subordinated Note due 2014 (D) $ 2,393,954 01/12/07 2,233,202 1,196,977
Limited Liability Company Unit Class A (B) 156,046 uts. 01/12/07 156,046 --
Limited Liability Company Unit Class C (B) 112,873 uts. 01/12/07 112,873 --
------------ ------------
2,502,121 1,196,977
------------ ------------
* 12/30/97 and 05/29/99.
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9
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)
September 30, 2009
(Unaudited)
Principal Amount
Shares, Units
or Ownership Acquisition
CORPORATE RESTRICTED SECURITIES:(A)(Continued) Percentage Date Cost Fair Value
------------ -------- ------------ ------------
CONNOR SPORT COURT INTERNATIONAL, INC.
A designer and manufacturer of outdoor and indoor synthetic sports flooring and other temporary flooring products.
Preferred Stock Series B-2 (B) 17,152 shs. 07/05/07 $ 700,392 $ 1,715,247
Preferred Stock Series C (B) 8,986 shs. 07/05/07 300,168 874,589
Common Stock (B) 718 shs. 07/05/07 7 7
Limited Partnership Interest (B) 12.64% int. * 189,586 --
------------ ------------
1,190,153 2,589,843
------------ ------------
COREPHARMA LLC
A manufacturer of oral dose generic pharmaceuticals targeted at niche applications.
12% Senior Subordinated Note due 2013 $ 2,550,000 08/04/05 2,461,527 2,550,000
Warrant, exercisable until 2013, to purchase
common stock at $.001 per share (B) 20 shs. 08/04/05 137,166 180,758
------------ ------------
2,598,693 2,730,758
------------ ------------
CRANE RENTAL CORPORATION
A crane rental company.
13% Senior Subordinated Note due 2015 $ 2,295,000 08/21/08 2,074,793 2,340,900
Common Stock (B) 255,000 shs. 08/21/08 255,000 182,769
Warrant, exercisable until 2016, to purchase
common stock at $.01 per share (B) 136,070 shs. 08/21/08 194,826 97,527
------------ ------------
2,524,619 2,621,196
------------ ------------
DAVIS-STANDARD LLC
A manufacturer, assembler, and installer of a broad range of capital equipment that is used in the extrusion, conversion, and
processing of plastic materials.
12% Senior Subordinated Note due 2014 $ 1,847,826 10/30/06 1,750,398 1,859,580
Limited Partnership Interest (B) 1.82% int. 10/30/06 702,174 1,039,699
Warrant, exercisable until 2014, to purchase
preferred stock at $.01 per share (B) 50 shs. 10/30/06 49,830 65,155
Warrant, exercisable until 2014, to purchase
common stock at $.01 per share (B) 34 shs. 10/30/06 34,000 70,580
------------ ------------
2,536,402 3,035,014
------------ ------------
DIVERSCO, INC./DHI HOLDINGS, INC.
A contract provider of janitorial and equipment maintenance services and temporary production labor to industrial customers.
Membership Interests of MM/Lincap
Diversco Investments Ltd. LLC (B) 27.20% int. 08/27/98 734,090 --
Preferred Stock (B) 3,278 shs. 12/14/01 2,784,133 1,319,430
Warrants, exercisable until 2011, to purchase common
stock of DHI Holdings, Inc. at $.01 per share (B) 13,352 shs. ** 403,427 --
------------ ------------
3,921,650 1,319,430
------------ ------------
* 08/12/04 and 01/14/05.
** 10/24/96 and 08/28/98.
--------------------------------------------------------------------------------------------------------------------------------
10
MassMutual Corporate Investors
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)
September 30, 2009
(Unaudited)
Principal Amount
Shares, Units
or Ownership Acquisition
CORPORATE RESTRICTED SECURITIES:(A)(Continued) Percentage Date Cost Fair Value
------------ -------- ------------ ------------
DUNCAN SYSTEMS, INC.
A distributor of windshields and side glass for the recreational vehicle market.
10% Senior Secured Term Note due 2013 $ 540,000 11/01/06 $ 531,900 $ 551,609
13% Senior Subordinated Note due 2014 $ 855,000 11/01/06 779,907 863,550
Common Stock (B) 180,000 shs. 11/01/06 180,000 144,361
Warrant, exercisable until 2014, to purchase
common stock at $.01 per share (B) 56,514 shs. 11/01/06 78,160 45,325
------------ ------------
1,569,967 1,604,845
------------ ------------
DWYER GROUP, INC.
A franchiser of a variety of home repair services.
Common Stock (B) 6,906 shs. * 690,600 1,142,475
Warrant, exercisable until 2011, to purchase
common stock at $.01 per share (B) 2,034 shs. 10/30/03 186,469 336,421
------------ ------------
877,069 1,478,896
------------ ------------
E S P HOLDCO, INC.
A manufacturer of power protection technology for commercial office equipment, primarily supplying the office equipment dealer
network.
14% Senior Subordinated Note due 2015 $ 2,298,123 01/08/08 2,255,940 2,235,553
Common Stock (B) 660 shs. 01/08/08 329,990 107,076
------------ ------------
2,585,930 2,342,629
------------ ------------
E X C ACQUISITION CORPORATION
A manufacturer of pre-filled syringes and pump systems used for intravenous drug delivery.
Warrant, exercisable until 2014, to purchase
common stock at $.01 per share (B) 22 shs. 06/28/04 77,208 265,386
------------ ------------
F C X HOLDINGS CORPORATION
A distributor of specialty/technical valves, actuators, accessories, and process instrumentation supplying a number of industrial,
high purity, and energy end markets in North America.
15% Senior Subordinated Note due 2015 $ 2,176,059 10/06/08 2,131,866 2,199,847
Preferred Stock (B) 4,341 shs. 10/06/08 434,074 243,061
Common Stock (B) 3,069 shs. 10/06/08 3,069 --
------------ ------------
2,569,009 2,442,908
------------ ------------
F H S HOLDINGS LLC
A national provider of customized disease management services to large self-insured employers.
12% Senior Subordinated Note due 2014 (D) $ 2,390,625 06/01/06 2,220,452 1,195,313
Limited Liability Company Units of Linden/FHS
Holdings LLC (B) 159 uts. 06/01/06 159,362 --
Common Unit Class B (B) 1,386 uts. 06/01/06 122,361 --
------------ ------------
2,502,175 1,195,313
------------ ------------
* 10/30/03 and 01/02/04.
--------------------------------------------------------------------------------------------------------------------------------
11
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)
September 30, 2009
(Unaudited)
Principal Amount
Shares, Units
or Ownership Acquisition
CORPORATE RESTRICTED SECURITIES:(A)(Continued) Percentage Date Cost Fair Value
------------ -------- ------------ ------------
FLUTES, INC.
An independent manufacturer of micro fluted corrugated sheet material for the food and consumer products packaging industries.
10% Senior Secured Term Note due 2013 (D) $ 918,385 04/13/06 $ 904,609 $ 229,596
14% Senior Subordinated Note due 2014 (D) $ 555,059 04/13/06 495,635 --
Common Stock (B) 109,436 shs. 04/13/06 109,436 --
Warrant, exercisable until 2014, to purchase
common stock at $.01 per share (B) 30,940 shs. 04/13/06 48,433 --
------------ ------------
1,558,113 229,596
------------ ------------
FOWLER HOLDING, INC.
A provider of site development services to residential homebuilders and developers in the Raleigh/Durham region of North Carolina.
12% Senior Subordinated Note due 2013 (D) $ 2,365,217 02/03/06 2,121,304 --
Common Stock (B) 185 shs. 02/03/06 184,783 --
Warrant, exercisable until 2013, to purchase
common stock at $.01 per share (B) 254 shs. 02/03/06 208,435 --
------------ ------------
2,514,522 --
------------ ------------
FUEL SYSTEMS HOLDING CORPORATION
An independent North American supplier of fuel tanks for a wide variety of commercial vehicles.
12% Senior Subordinated Note due 2014 (D) $ 2,337,500 01/31/06 2,171,538 --
Preferred Stock (B) 31,718 shs. 06/12/08 31,718 --
Common Stock (B) 212,500 shs. 01/31/06 212,500 --
Warrant, exercisable until 2016, to purchase
common stock at $.01 per share (B) 138,408 shs. 01/31/06 119,213 --
------------ ------------
2,534,969 --
------------ ------------
GOLDEN COUNTY FOODS HOLDING, INC.
A manufacturer of frozen appetizers and snacks.
12% Senior Subordinated Note due 2015 $ 1,912,500 11/01/07 1,727,592 1,530,000
16% PIK Note due 2015 $ 392,029 12/31/08 320,317 313,623
8% Series A Convertible Preferred Stock, convertible into
4.25% of the fully dilluted common shares (B) 146,658 shs. 11/01/07 146,658 --
------------ ------------
2,194,567 1,843,623
------------ ------------
H M HOLDING COMPANY
A designer, manufacturer, and importer of promotional and wood furniture.
12% Senior Subordinated Note due 2013 (D) $ 2,210,000 02/10/06 2,048,925 --
Preferred Stock (B) 40 shs. * 40,476 --
Common Stock (B) 340 shs. 02/10/06 340,000 --
Warrant, exercisable until 2013, to purchase
common stock at $.02 per share (B) 126 shs. 02/10/06 116,875 --
------------ ------------
2,546,276 --
------------ ------------
* 09/18/07 and 06/27/08.
--------------------------------------------------------------------------------------------------------------------------------
12
MassMutual Corporate Investors
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)
September 30, 2009
(Unaudited)
Principal Amount
Shares, Units
or Ownership Acquisition
CORPORATE RESTRICTED SECURITIES:(A)(Continued) Percentage Date Cost Fair Value
------------ -------- ------------ ------------
HIGHGATE CAPITAL LLC
An acquirer of controlling or substantial interests in manufacturing and marketing entities.
Series A Preferred Units (B) 1.19% int. 7/21/94 $ 367,440 $ --
------------ ------------
HOME DECOR HOLDING COMPANY
A designer, manufacturer and marketer of framed art and wall decor products.
12.5% Senior Subordinated Note due 2012 $ 2,043,269 * 1,930,902 2,030,333
Common Stock (B) 63 shs. * 62,742 53,017
Warrant, exercisable until 2012, to purchase
common stock at $.02 per share (B) 200 shs. * 199,501 168,583
------------ ------------
2,193,145 2,251,933
------------ ------------
HOSPITALITY MINTS HOLDING COMPANY
A manufacturer of individually-wrapped imprinted promotional mints.
12% Senior Subordinated Note due 2016 $ 2,075,581 08/19/08 1,920,297 2,024,865
Common Stock (B) 474 shs. 08/19/08 474,419 124,954
Warrant, exercisable until 2016, to purchase
common stock at $.01 per share (B) 123 shs. 08/19/08 113,773 32,296
------------ ------------
2,508,489 2,182,115
------------ ------------
INSURANCE CLAIMS MANAGEMENT, INC.
A third party administrator providing auto and property claim administration services for insurance companies.
Common Stock (B) 69 shs. 02/27/07 2,077 113,888
Warrant, exercisable until 2011, to purchase
common stock at $.01 per share (B) 20 shs. 02/27/07 612 33,543
------------ ------------
2,689 147,431
------------ ------------
INTEGRATION TECHNOLOGY SYSTEMS, INC.
A manufacturer of steel protective computer and network systems for the industrial and office environments.
12% Senior Subordinated Note due on demand $ 43,943 03/01/04 1 --
Common Stock (B) 228 shs. 06/01/00 262,200 --
------------ ------------
262,201 --
------------ ------------
INTERNATIONAL OFFSHORE SERVICES LLC
A leading provider of marine transportation services, platform decommissioning, and salvage services to oil and gas producers, in
the shallow waters of the Gulf of Mexico.
14.25% Senior Subordinated Secured Note due 2017 $ 2,550,000 07/07/09 2,299,566 2,626,500
Limited Liability Company Unit (B) 3,112 uts. 07/07/09 186,684 31
------------ ------------
2,486,250 2,626,531
------------ ------------
* 06/30/04 and 08/19/04.
--------------------------------------------------------------------------------------------------------------------------------
13
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)
September 30, 2009
(Unaudited)
Principal Amount
Shares, Units
or Ownership Acquisition
CORPORATE RESTRICTED SECURITIES:(A)(Continued) Percentage Date Cost Fair Value
------------ -------- ------------ ------------
JASON, INC.
A diversified manufacturing company serving various industrial markets.
13% Senior Subordinated Note due 2010 (D) $ 963,687 08/04/00 $ 848,275 $ 481,844
Limited Partnership Interest of
Saw Mill Capital Fund II, L.P. (B) 2.50% int. 08/03/00 886,479 --
Warrant, exercisable until 2010, to purchase
common stock at $.01 per share (B) 50,870 shs. 08/04/00 115,412 --
------------ ------------
1,850,166 481,844
------------ ------------
JUSTRITE MANUFACTURING ACQUISITION CO.
A manufacturer of safety products such as storage cabinets and containers.
12% Senior Subordinated Note due 2011 $ 1,593,750 12/15/04 1,547,635 1,593,750
Warrant, exercisable until 2011, to purchase
common stock at $.01 per share (B) 1,121 shs. 12/15/04 101,109 183,056
------------ ------------
1,648,744 1,776,806
------------ ------------
K H O F HOLDINGS, INC.
A manufacturer of premium disposable tableware products serving both the foodservice and consumer channels.
14% Senior Subordinated Note due 2014 $ 2,422,271 10/15/07 2,373,913 2,470,716
Common Stock (B) 220,673 shs. 10/15/07 220,673 167,382
------------ ------------
2,594,586 2,638,098
------------ ------------
K N B HOLDINGS CORPORATION
A designer, manufacturer and marketer of products for the custom framing market.
13.5% Senior Subordinated Note due 2013 $ 2,540,051 05/25/06 2,442,261 2,159,043
Common Stock (B) 134,210 shs. 05/25/06 134,210 --
Warrant, exercisable until 2013, to purchase
common stock at $.01 per share (B) 82,357 shs. 05/25/06 71,534 --
------------ ------------
2,648,005 2,159,043
------------ ------------
K P I HOLDINGS, INC.
Pace Industries is the largest player in the U.S. non-automotive, non-ferrous die casting segment.
13% Senior Subordinated Note due 2014 (D) $ 2,106,522 07/16/08 1,968,368 1,579,892
Convertible Preferred Stock Series C (B) 55 shs. 06/30/09 55,435 41,250
Convertible Preferred Stock Series D (B) 24 shs. 09/17/09 24,476 18,353
Common Stock (B) 443 shs. 07/15/08 443,478 --
Warrant, exercisable until 2018, to purchase
common stock at $.01 per share (B) 96 shs. 07/16/08 96,024 --
------------ ------------
2,587,781 1,639,495
------------ ------------
--------------------------------------------------------------------------------------------------------------------------------
14
MassMutual Corporate Investors
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)
September 30, 2009
(Unaudited)
Principal Amount
Shares, Units
or Ownership Acquisition
CORPORATE RESTRICTED SECURITIES:(A)(Continued) Percentage Date Cost Fair Value
------------ -------- ------------ ------------
K W P I HOLDINGS CORPORATION
A manufacturer and distributor of vinyl windows and patio doors throughout the northwestern United States.
12.75% Senior Subordinated Note due 2014 $ 2,593,530 03/14/07 $ 2,373,384 $ 2,074,824
Common Stock (B) 232 shs. 03/13/07 232,000 --
Warrant, exercisable until 2019, to purchase
preferred stock at $.01 per share (B) 134 shs. 07/07/09 -- --
Warrant, exercisable until 2017, to purchase
common stock at $.01 per share (B) 167 shs. 03/14/07 162,260 --
------------ ------------
2,767,644 2,074,824
------------ ------------
K-TEK HOLDING CORPORATION
A manufacturer of instrumentation for liquid and bulk solids level detection for process and storage tanks.
14% Senior Subordinated Note due 2015 $ 2,264,747 12/20/07 2,223,081 2,310,042
Preferred Stock (B) 363,260 shs. 12/20/07 363,260 410,013
Common Stock (B) 102,616 shs. 12/20/07 1,026 53,537
------------ ------------
2,587,367 2,773,592
------------ ------------
M V I HOLDING, INC.
A manufacturer of large precision machined metal components used in equipment which services a variety of industries, including the
oil & gas, mining, and defense markets.
13% Senior Subordinated Note due 2016 $ 1,227,086 09/12/08 1,136,873 1,251,628
Common Stock (B) 61 shs. 09/12/08 60,714 61,287
Warrant, exercisable until 2018, to purchase
common stock at $.01 per share (B) 66 shs. 09/12/08 65,571 66,193
------------ ------------
1,263,158 1,379,108
------------ ------------
MAIL COMMUNICATIONS GROUP, INC.
A provider of mail processing and handling services, lettershop services, and commercial printing services.
12.5% Senior Subordinated Note due 2014 $ 975,000 05/04/07 912,469 975,000
Limited Liability Company Unit (B) 24,109 uts. * 314,464 331,607
Warrant, exercisable until 2014, to purchase
common stock at $.01 per share (B) 3,375 shs. 05/04/07 43,031 46,422
------------ ------------
1,269,964 1,353,029
------------ ------------
MAVERICK ACQUISITION COMPANY
A manufacturer of capsules that cover the cork and neck of wine bottles.
6.78% Senior Secured Tranche A Note due 2010 (C) $ 300,546 09/03/04 300,546 298,530
12.5% Senior Secured Tranche B Note due 2011 $ 313,433 09/03/04 297,874 301,935
Limited Partnership Interest (B) 7.84% int. 09/03/04 58,769 11,933
Warrant, exercisable until 2011, to purchase
common stock at $.01 per share (B) 425 shs. 09/03/04 39,473 8,622
------------ ------------
696,662 621,020
------------ ------------
* 05/04/07 and 01/02/08.
--------------------------------------------------------------------------------------------------------------------------------
15
MassMutual Corporate Investors
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)
September 30, 2009
(Unaudited)
Principal Amount
Shares, Units
or Ownership Acquisition
CORPORATE RESTRICTED SECURITIES:(A)(Continued) Percentage Date Cost Fair Value
------------ -------- ------------ ------------
MEDSYSTEMS HOLDINGS LLC
A manufacturer of enteral feeding products, such as feeding tubes and other products related to assisted feeding.
13% Senior Subordinated Note due 2015 $ 1,160,737 08/29/08 $ 1,028,608 $ 1,183,952
Preferred Unit (B) 126 uts. 08/29/08 125,519 134,115
Common Unit Class A (B) 1,268 uts. 08/29/08 1,268 56,953
Common Unit Class B (B) 472 uts. 08/29/08 120,064 21,192
------------ ------------
1,275,459 1,396,212
------------ ------------
MEGTEC HOLDINGS, INC.
A supplier of industrial and environmental products and services to a broad array of industries.
12% Senior Subordinated Note due 2016 $ 2,161,017 09/24/08 1,981,274 2,129,224
Preferred Stock (B) 107 shs. 09/24/08 103,255 111,355
Limited Partnership Interest (B) 388,983 int. 09/16/08 388,983 --
Warrant, exercisable until 2018, to purchase
common stock at $.01 per share (B) 35 shs. 09/24/08 33,268 --
------------ ------------
2,506,780 2,240,579
------------ ------------
MICROGROUP, INC.
A manufacturer of precision parts and assemblies, and a value-added supplier of metal tubing and bars.
12% Senior Subordinated Note due 2013 $ 2,685,614 * 2,573,060 2,712,470
Common Stock (B) 450 shs. * 450,000 637,991
Warrant, exercisable until 2013, to purchase
common stock at $.02 per share (B) 164 shs. * 162,974 232,484
------------ ------------
3,186,034 3,582,945
------------ ------------
MILWAUKEE GEAR COMPANY
A manufacturer of high-precision custom gears and gear drives used by original equipment manufacturers operating in a number of
industries.
13% Senior Subordinated Note due 2014 $ 2,353,846 07/21/08 2,223,799 2,323,660
Preferred Stock (B) 263 shs. 07/21/08 261,830 249,219
Common Stock (B) 18 shs. 07/21/08 20,000 --
Warrant, exercisable until 2014, to purchase
common stock at $.01 per share (B) 10 shs. 07/21/08 11,285 --
------------ ------------
2,516,914 2,572,879
------------ ------------
MOMENTUM HOLDING CO.
A designer and supplier of upholstery fabric to commercial furniture manufacturers and architectural and design firms.
Limited Partnership Interest (B) 21.23% int. 08/04/06 106,153 238,690
Warrant, exercisable until 2014, to purchase
common stock at $.02 per share (B) 1,107 shs. 08/04/06 107,109 248,806
------------ ------------
213,262 487,496
------------ ------------
* 08/12/05 and 09/11/06.
--------------------------------------------------------------------------------------------------------------------------------
16
MassMutual Corporate Investors
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)
September 30, 2009
(Unaudited)
Principal Amount
Shares, Units
or Ownership Acquisition
CORPORATE RESTRICTED SECURITIES:(A)(Continued) Percentage Date Cost Fair Value
------------ -------- ------------ ------------
MONESSEN HOLDING CORPORATION
A designer and manufacturer of a broad line of gas, wood, and electric hearth products and accessories.
14% Senior Subordinated Note due 2014 $ 2,550,000 07/25/08 $ 2,401,291 $ 2,040,000
14% PIK Note due 2014 $ 679,750 07/25/08 590,300 543,800
Warrant, exercisable until 2014, to purchase
common stock at $.02 per share (B) 152 shs. 03/31/06 138,125 --
------------ ------------
3,129,716 2,583,800
------------ ------------
NABCO, INC.
A producer of explosive containment vessels in the United States.
14% Senior Subordinated Note due 2014 $ 815,419 02/24/06 699,815 611,564
Limited Liability Company Unit (B) 825 uts. * 825,410 --
Warrant, exercisable until 2016, to purchase
common stock at $.01 per share (B) 129 shs. 02/24/06 37,188 --
------------ ------------
1,562,413 611,564
------------ ------------
NAVIS GLOBAL
A designer, manufacturer, seller and servicer of finishing machinery for the knit and woven segments of the global textile industry.
12% Senior Secured Term Note Series A due 2010 $ 117,978 11/14/08 117,978 117,978
14% Senior Subordinated Note due 2014 (D) $ 1,338,613 05/28/04 1,155,793 --
10.75% Senior Secured Note due 2011 (D) $ 609,206 05/28/04 607,397 152,302
Warrant, exercisable until 2012, to purchase
common stock at $.01 per share (B) 203,912 shs. 05/28/04 130,789 --
------------ ------------
2,011,957 270,280
------------ ------------
NESCO HOLDINGS CORPORATION
A sales and leasing company that provides equipment to the electric utility, telecommunications, and various other industries.
12% Senior Secured Subordinated Note due 2015 $ 2,125,000 08/02/07 1,888,243 2,146,250
Common Stock (B) 425,000 shs. 08/02/07 425,000 655,152
Warrant, exercisable until 2015, to purchase
common stock at $.01 per share (B) 119,360 shs. 08/02/07 194,257 183,998
------------ ------------
2,507,500 2,985,400
------------ ------------
* 02/24/06 and 06/22/07.
--------------------------------------------------------------------------------------------------------------------------------
17
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)
September 30, 2009
(Unaudited)
Principal Amount
Shares, Units
or Ownership Acquisition
CORPORATE RESTRICTED SECURITIES:(A)(Continued) Percentage Date Cost Fair Value
------------ -------- ------------ ------------
NETSHAPE TECHNOLOGIES, INC.
A manufacturer of powder metal and metal injection molded precision components used in industrial, consumer, and other applications.
12% Senior Subordinated Note due 2014 $ 1,530,000 02/02/07 $ 1,408,570 $ 1,185,501
Limited Partnership Interest of
Saw Mill PCG Partners LLC (B) 2.61% int. 02/01/07 1,019,958 --
Limited Liability Company Unit Class D of
Saw Mill PCG Partners LLC (B) 42 uts. * 41,712 20,855
Preferred Stock Class A (B) 1 sh. 12/18/08 1,370 686
Preferred Stock Class A-1 (B) 2 shs. 09/30/09 2,284 1,140
Warrant, exercisable until 2014, to purchase
common stock at $.01 per share (B) 91 shs. 02/02/07 90,830 --
------------ ------------
2,564,724 1,208,182
------------ ------------
NORTHWEST MAILING SERVICES, INC.
A producer of promotional materials for companies that use direct mail as part of their customer retention and loyalty programs.
12% Senior Subordinated Note due 2016 $ 2,281,579 07/09/09 1,892,454 2,372,842
Limited Partnership Interest (B) 2,684 uts. 07/09/09 268,421 255,000
Warrant, exercisable until 2019, to purchase
common stock at $.01 per share (B) 3,498 shs. 07/09/09 349,753 35
------------ ------------
2,510,628 2,627,877
------------ ------------
NYLONCRAFT, INC.
A supplier of engineered plastic components for the automotive industry.
9% Senior Secured Note due 2009 $ 812,500 01/28/02 812,500 609,375
11.5% Senior Subordinated Note due 2012 (D) $ 1,500,000 01/28/02 1,435,279 --
Common Stock (B) 312,500 shs. 01/28/02 312,500 --
Warrant, exercisable until 2012, to purchase
common stock at $.01 per share (B) 243,223 shs. 01/28/02 162,045 --
------------ ------------
2,722,324 609,375
------------ ------------
OAKRIVER TECHNOLOGY, INC.
Designs, engineers and assembles high precision automated process equipment for the medical device industry, with a focus on
defibrillators and stents.
10% Senior Secured Note due 2012 $ 293,600 01/03/06 289,196 299,659
13% Senior Subordinated Note due 2013 $ 687,241 01/03/06 633,073 687,241
Common Stock (B) 322,307 shs. 01/03/06 322,307 238,083
Warrant, exercisable until 2013, to purchase
common stock at $.01 per share (B) 75,378 shs. 01/03/06 62,824 55,681
------------ ------------
1,307,400 1,280,664
------------ ------------
* 12/18/08 and 09/30/09.
--------------------------------------------------------------------------------------------------------------------------------
18
MassMutual Corporate Investors
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)
September 30, 2009
(Unaudited)
Principal Amount
Shares, Units
or Ownership Acquisition
CORPORATE RESTRICTED SECURITIES:(A)(Continued) Percentage Date Cost Fair Value
------------ -------- ------------ ------------
OLYMPIC SALES, INC.
A boat retailer in Washington state, Oregon, California and British Columbia.
12% Senior Subordinated Note due 2009 (D) $ 1,022,000 08/07/98 $ 1,022,000 $ 153,300
12% Senior Subordinated Note due 2009 (D) $ 307,071 02/09/00 268,283 46,061
------------ ------------
1,290,283 199,361
------------ ------------
ONTARIO DRIVE & GEAR LTD.
A manufacturer of all-wheel drive, off-road amphibious vehicles and related accessories.
Limited Liability Company Unit (B) 3,667 uts. 01/17/06 572,115 453,412
Warrant, exercisable until 2013, to purchase
common stock at $.01 per share (B) 619 shs. 01/17/06 170,801 76,552
------------ ------------
742,916 529,964
------------ ------------
P A S HOLDCO LLC
An independent provider of maintenance, repair and overhaul services to the aerospace gas turbine engine and airframe markets.
14% Senior Subordinated Note due 2014 $ 2,312,679 07/03/06 2,217,106 2,335,806
Preferred Unit (B) 382 uts. 07/03/06 382,150 531,807
Preferred Unit (B) 69 uts. 07/03/06 68,790 95,730
Common Unit Class I (B) 148 uts. 07/03/06 -- 323,839
Common Unit Class L (B) 31 uts. 07/03/06 -- 68,436
------------ ------------
2,668,046 3,355,618
------------ ------------
P I I HOLDING CORPORATION
A manufacturer of plastic film and bags for the general industrial, medical, and food industries.
12% Senior Subordinated Note due 2013 $ 2,295,000 03/31/06 2,182,585 2,295,000
Preferred Stock (B) 36 shs. 03/31/06 329,596 437,544
Common Stock (B) 23 shs. 03/31/06 25,500 101,457
Warrant, exercisable until 2013, to purchase
common stock at $.01 per share (B) 13 shs. 03/31/06 11,122 59,018
------------ ------------
2,548,803 2,893,019
------------ ------------
PACIFIC CONSOLIDATED HOLDINGS LLC
A manufacturer of rugged, mobile liquid and gaseous oxygen and nitrogen generating systems used in the global defense, oil & gas,
and medical sectors.
14% Senior Subordinated Note due 2012 $ 1,331,354 04/27/07 1,247,409 1,276,436
Limited Liability Company Unit (B) 1,754,707 uts. 04/27/07 63,233 --
------------ ------------
1,310,642 1,276,436
------------ ------------
PARADIGM PACKAGING, INC.
A manufacturer of plastic bottles and closures for the nutritional, pharmaceutical, personal care, and food packaging markets.
12% Senior Subordinated Note due 2011 $ 2,125,000 12/19/00 2,043,238 2,114,332
Membership Interests of MM/Lincap
PPI Investments, Inc., LLC (B) 2.42% int. 12/21/00 265,625 177,129
------------ ------------
2,308,863 2,291,461
------------ ------------
--------------------------------------------------------------------------------------------------------------------------------
19
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)
September 30, 2009
(Unaudited)
Principal Amount
Shares, Units
or Ownership Acquisition
CORPORATE RESTRICTED SECURITIES:(A)(Continued) Percentage Date Cost Fair Value
------------ -------- ------------ ------------
PEARLMAN ENTERPRISES, INC.
A developer and distributor of tools, equipment, and supplies to the natural and engineered stone industry.
Preferred Stock Series A (B) 2,334 shs. 05/22/09 $ 111,508 $ --
Preferred Stock Series B (B) 13,334 shs. 05/22/09 547,872 --
Common Stock (B) 40,540 shs. 05/22/09 1,877,208 --
------------ ------------
2,536,588 --
------------ ------------
POSTLE ALUMINUM COMPANY LLC
A manufacturer and distributor of aluminum extruded products.
3% Senior Subordinated PIK Note due 2014 (D) $ 2,198,100 10/02/06 2,014,226 549,525
Limited Liability Company Unit Class A 1,384 uts. 10/02/06 510,000 --
Limited Liability Company Unit 143 uts. 05/22/09 72,042 67,828
Warrant, exercisable until 2016, to purchase
common stock at $.01 per share (B) 8,595 shs. 10/02/06 124,644 --
------------ ------------
2,720,912 617,353
------------ ------------
POWER SERVICES HOLDING COMPANY
A provider of industrial motor repair services, predictive and preventative maintenance, and performance improvement consulting,
serving the petrochemical, mining, power generation, metals, and paper industries.
12% Senior Subordinated Note due 2016 $ 2,372,093 02/11/08 2,178,046 2,419,535
Limited Partnership Interest (B) 23.70% int. 02/11/08 177,729 92,073
Warrant, exercisable until 2016, to purchase
common stock at $.01 per share (B) 1,322 shs. 02/11/08 167,588 181,458
------------ ------------
2,523,363 2,693,066
------------ ------------
QUALIS AUTOMOTIVE LLC
A distributor of aftermarket automotive brake and chassis products.
12% Senior Subordinated Note due 2012 $ 1,742,711 05/28/04 1,598,853 1,791,146
Common Stock (B) 354,167 shs. 05/28/04 354,166 58,546
Warrant, exercisable until 2012, to purchase
common stock at $.01 per share (B) 377,719 shs. 05/28/04 377,719 62,440
------------ ------------
2,330,738 1,912,132
------------ ------------
R A J MANUFACTURING HOLDINGS LLC
A designer and manufacturer of women's swimwear sold under a variety of licensed brand names.
12.5% Senior Subordinated Note due 2014 $ 2,267,190 12/15/06 2,090,363 2,246,073
Limited Liability Company Unit (B) 2,828 uts. 12/15/06 282,810 158,758
Warrant, exercisable until 2014, to purchase
common stock at $.01 per share (B) 3 shs. 12/15/06 131,483 74,867
------------ ------------
2,504,656 2,479,698
------------ ------------
--------------------------------------------------------------------------------------------------------------------------------
20
MassMutual Corporate Investors
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)
September 30, 2009
(Unaudited)
Principal Amount
Shares, Units
or Ownership Acquisition
CORPORATE RESTRICTED SECURITIES:(A)(Continued) Percentage Date Cost Fair Value
------------ -------- ------------ ------------
R E I DELAWARE HOLDING, INC.
An engineer and manufacturer of highly complex, close tolerance components, assemblies, tooling and custom automation equipment
primarily for aerospace, medical and defense/radar markets.
12% Senior Subordinated Note due 2016 $ 2,550,000 01/18/08 $ 2,467,911 $ 2,580,199
Warrant, exercisable until 2018, to purchase
common stock at $.01 per share (B) 6 shs. 01/18/08 31,089 57,006
------------ ------------
2,499,000 2,637,205
------------ ------------
ROYAL BATHS MANUFACTURING COMPANY
A manufacturer and distributor of acrylic and cultured marble bathroom products.
12.5% Senior Subordinated Note due 2011 $ 1,062,500 11/14/03 1,016,835 1,025,270
Warrant, exercisable until 2011, to purchase
common stock at $.01 per share (B) 140 shs. 11/14/03 122,946 --
------------ ------------
1,139,781 1,025,270
------------ ------------
SAFETY SPEED CUT MANUFACTURING COMPANY, INC.
A manufacturer of vertical panel saws and routers for the wood working industry.
Class B Common Stock (B) 1,480 shs. 06/02/99 256,212 462,827
------------ ------------
SAVAGE SPORTS HOLDING, INC.
A manufacturer of sporting firearms.
12% Senior Subordinated Note due 2012 $ 1,538,793 09/10/04 1,479,628 1,538,793
Common Stock (B) 612 shs. * 642,937 1,027,554
Warrant, exercisable until 2012, to purchase
common stock at $.01 per share (B) 134 shs. 09/10/04 113,578 224,349
------------ ------------
2,236,143 2,790,696
------------ ------------
SENCORE HOLDING COMPANY
A designer, manufacturer, and marketer of decoders, receivers and modulators sold to broadcasters, satellite, cable and telecom
operators for encoding/decoding analog and digital transmission video signals.
12.5% Senior Subordinated Note due 2014 $ 1,765,385 01/15/09 1,542,417 1,611,664
Common Stock (B) 131 shs. 01/15/09 130,769 32,693
Warrant, exercisable until 2019, to purchase
common stock at $.01 per share (B) 282 shs. 01/15/09 281,604 3
------------ ------------
1,954,790 1,644,360
------------ ------------
SMART SOURCE HOLDINGS LLC
A short-term computer rental company.
12% Senior Subordinated Note due 2015 $ 2,223,076 ** 2,039,834 2,223,076
Limited Liability Company Unit (B) 619 uts. ** 637,996 514,685
Warrant, exercisable until 2015, to purchase
common stock at $.01 per share (B) 157 shs. ** 164,769 130,387
------------ ------------
2,842,599 2,868,148
------------ ------------
* 09/10/04 and 10/05/07.
** 08/31/07 and 03/06/08.
--------------------------------------------------------------------------------------------------------------------------------
21
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)
September 30, 2009
(Unaudited)
Principal Amount
Shares, Units
or Ownership Acquisition
CORPORATE RESTRICTED SECURITIES:(A)(Continued) Percentage Date Cost Fair Value
------------ -------- ------------ ------------
SPECIALTY COMMODITIES, INC.
A distributor of specialty food ingredients.
13.25% Senior Subordinated Note due 2016 $ 2,276,443 10/23/08 $ 2,136,401 $ 2,344,737
Common Stock (B) 30,000 shs. 10/23/08 300,000 285,000
Warrant, excercisable until 2018, to purchase
common stock at $.01 per share (B) 11,054 shs. 10/23/08 100,650 111
------------ ------------
2,537,051 2,629,848
------------ ------------
STANTON CARPET HOLDING CO.
A designer and marketer of high and mid-priced decorative carpets and rugs.
12.13% Senior Subordinated Note due 2014 $ 2,239,024 08/01/06 2,126,310 2,087,355
Common Stock (B) 311 shs. 08/01/06 310,976 24,629
Warrant, exercisable until 2014, to purchase
common stock at $.02 per share (B) 104 shs. 08/01/06 93,293 8,203
------------ ------------
2,530,579 2,120,187
------------ ------------
SYNTERACT HOLDINGS CORPORATION
A provider of outsourced clinical trial management services to pharmaceutical and biotechnology companies.
14% Senior Subordinated Note due 2016 $ 2,577,956 09/02/08 2,410,513 2,629,515
Redeemable Preferred Stock Series A (B) 1,280 shs. 09/02/08 12,523 43,546
Warrant, exercisable until 2018, to purchase
common stock at $.01 per share (B) 12,803 shs. 09/02/08 112,693 --
------------ ------------
2,535,729 2,673,061
------------ ------------
T H I ACQUISITION, INC.
A machine servicing company providing value-added steel services to long steel products.
12% Senior Subordinated Note due 2016 $ 2,550,000 01/14/08 2,410,946 2,550,000
Warrant, exercisable until 2016, to purchase
common stock at $.01 per share (B) 9 shs. 01/14/08 88,054 74,861
------------ ------------
2,499,000 2,624,861
------------ ------------
TANGENT RAIL CORPORATION
A manufacturer of rail ties and provider of specialty services to the North American railroad industry.
13% Senior Subordinated Note due 2015 $ 2,217,385 10/14/05 1,952,116 2,217,385
Common Stock (B) 2,203 shs. 10/14/05 2,203 922,198
Warrant, exercisable until 2015, to purchase
common stock at $.01 per share (B) 1,192 shs. 09/30/08 568,009 498,983
------------ ------------
2,522,328 3,638,566
------------ ------------
TELECORPS HOLDINGS, INC.
A provider of equipment and services to producers of television shows and motion pictures.
12.75% Senior Subordinated Note due 2016 $ 3,176,506 * 2,785,539 3,271,801
Common Stock (B) 270 shs. 09/02/09 10,994 10,445
Warrant, exercisable until 2019, to purchase
common stock at $.01 per share (B) 7,906 shs. * 327,437 79
------------ ------------
3,123,970 3,282,325
------------ ------------
* 05/20/09 and 09/02/09.
--------------------------------------------------------------------------------------------------------------------------------
22
MassMutual Corporate Investors
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)
September 30, 2009
(Unaudited)
Principal Amount
Shares, Units
or Ownership Acquisition
CORPORATE RESTRICTED SECURITIES:(A)(Continued) Percentage Date Cost Fair Value
------------ -------- ------------ ------------
TERRA RENEWAL LLC
A provider of wastewater residual management and required environmental reporting, permitting, nutrient management planning and
record keeping to companies involved in poultry and food processing.
12% Senior Subordinated Note due 2014 $ 1,162,110 * $ 1,115,591 $ 929,688
6.75%Term Note due 2012 (C) $ 1,508,259 * 1,503,120 1,357,433
Limited Partnership Interest of
Saw Mill Capital Fund V, LLC (B) 3.97% int. ** 149,259 --
Warrant, exercisable until 2016, to purchase
common stock at $.01 per share (B) 72 shs. 04/28/06 59,041 --
------------ ------------
2,827,011 2,287,121
------------ ------------
TORRENT GROUP HOLDINGS, INC.
A contractor specializing in the sales and installation of engineered drywells for the retention and filtration of stormwater and
nuisance water flow.
12.5% Senior Subordinated Note due 2013 $ 2,239,024 10/26/07 2,102,363 1,903,170
Series A Preferred Stock (B) 414 shs. 10/26/07 414,051 --
------------ ------------
2,516,414 1,903,170
------------ ------------
TOTAL E & S, INC.
A manufacturer of a wide variety of equipment used in the oil and gas industry.
10.5% Senior Secured Term Note due 2013 $ 851,351 03/02/07 838,581 808,783
13% Senior Subordinated Note due 2014 $ 598,450 03/02/07 490,608 448,838
Common Stock (B) 125,199 shs. 03/02/07 125,199 --
Warrant, exercisable until 2014 to purchase
common stock at $.01 per share (B) 34,533 shs. 03/02/07 95,873 --
------------ ------------
1,550,261 1,257,621
------------ ------------
TRANSPAC HOLDING COMPANY
A designer, importer, and wholesaler of home decor and seasonal gift products.
12% Senior Subordinated Note due 2015 (D) $ 1,773,006 10/31/07 1,649,939 1,507,055
Common Stock (B) 209 shs. 10/31/07 208,589 --
Warrant, exercisable until 2015, to purchase
common stock at $.01 per share (B) 94 shs. 10/31/07 87,607 --
------------ ------------
1,946,135 1,507,055
------------ ------------
TRANSTAR HOLDING COMPANY
A distributor of aftermarket automotive transmission parts.
12% Senior Subordinated Note due 2014 $ 1,734,000 08/31/05 1,680,474 1,751,340
Common Stock (B) 1,078 shs. *** 1,078,450 980,371
Warrant, exercisable until 2013, to purchase
common stock at $.02 per share (B) 86 shs. 08/31/05 77,485 78,124
------------ ------------
2,836,409 2,809,835
------------ ------------
* 04/28/06 and 09/13/06.
** 03/01/05 and 10/10/08.
*** 08/31/05 and 04/30/07.
--------------------------------------------------------------------------------------------------------------------------------
23
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)
September 30, 2009
(Unaudited)
Principal Amount
Shares, Units
or Ownership Acquisition
CORPORATE RESTRICTED SECURITIES:(A)(Continued) Percentage Date Cost Fair Value
------------ -------- ------------ ------------
TRANZONIC COMPANIES (THE)
A producer of commercial and industrial supplies, such as safety products, janitorial supplies, work apparel, washroom and restroom
supplies and sanitary care products.
13% Senior Subordinated Note due 2010 $ 2,712,000 02/05/98 $ 2,653,957 $ 2,712,000
Common Stock (B) 630 shs. 02/04/98 630,000 543,659
Warrant, exercisable until 2010, to purchase
common stock at $.01 per share (B) 444 shs. 02/05/98 368,832 383,150
------------ ------------
3,652,789 3,638,809
------------ ------------
TRUCK BODIES & EQUIPMENT INTERNATIONAL
A designer and manufacturer of accessories for heavy and medium duty trucks, primarily dump bodies, hoists, various forms of flatbed
bodies, landscape bodies and other accessories.
16% Senior Subordinated Note due 2010 (D) $ 2,309,541 * 2,141,949 577,385
16% PIK Note due 2010 (D) $ 639,464 12/30/08 159,866 159,866
Preferred Stock Series B (B) 241 shs. 10/20/08 241,172
Common Stock (B) 742 shs. * 800,860 --
Warrant, exercisable until 2013, to purchase
common stock at $.02 per share (B) 153 shs. * 159,894 --
Warrant, exercisable until 2018, to purchase
common stock at $.01 per share (B) 1,054 shs. 10/20/08 -- --
------------ ------------
3,503,741 737,251
------------ ------------
TRUSTILE DOORS, INC.
A manufacturer and distributor of interior doors.
Warrant, exercisable until 2010, to purchase
common stock at $.01 per share (B) 5,781 shs. 04/11/03 68,059 227,752
------------ ------------
U M A ENTERPRISES, INC.
An importer and wholesaler of home decor products.
15% Senior Subordinated Note due 2015 $ 1,746,980 02/08/08 1,708,950 1,706,176
Convertible Preferred Stock (B) 887 shs. 02/08/08 886,956 23,172
------------ ------------
2,595,906 1,729,348
------------ ------------
U-LINE CORPORATION
A manufacturer of high-end, built-in, undercounter ice making, wine storage and refrigeration appliances.
12.5% Senior Subordinated Note due 2012 $ 1,882,100 04/30/04 1,781,803 1,599,785
Common Stock (B) 182 shs. 04/30/04 182,200 --
Warrant, exercisable until 2012, to purchase
common stock at $.01 per share (B) 230 shs. 04/30/04 211,736 --
------------ ------------
2,175,739 1,599,785
------------ ------------
* 07/19/05 and 12/22/05.
--------------------------------------------------------------------------------------------------------------------------------
24
MassMutual Corporate Investors
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)
September 30, 2009
(Unaudited)
Principal Amount
Shares, Units
or Ownership Acquisition
CORPORATE RESTRICTED SECURITIES:(A)(Continued) Percentage Date Cost Fair Value
------------ -------- ------------ ------------
VISIONEERING, INC.
A designer and manufacturer of tooling and fixtures for the aerospace industry.
10.5% Senior Secured Term Loan due 2013 $ 802,941 05/17/07 $ 790,897 $ 813,393
13% Senior Subordinated Note due 2014 $ 648,530 05/17/07 592,561 655,015
18% PIK Convertible Preferred Stock (B) 37,381 shs. 03/13/09 72,519 68,893
Common Stock (B) 123,529 shs. 05/17/07 123,529 3,447
Warrant, exercisable until 2014, to purchase
common stock at $.01 per share (B) 35,006 shs. 05/17/07 55,055 977
------------ ------------
1,634,561 1,541,725
------------ ------------
VITALITY FOODSERVICE, INC.
A non-carbonated beverage dispensing company focused on the foodservice industry.
13% Senior Subordinated Note due 2011 $ 1,887,288 09/24/04 1,812,926 1,879,229
Common Stock (B) 26,456 shs. * 264,558 288,965
Warrant, exercisable until 2011, to purchase
common stock at $.01 per share (B) 23,787 shs. 09/24/04 186,883 259,813
------------ ------------
2,264,367 2,428,007
------------ ------------
VITEX PACKAGING GROUP, INC.
A manufacturer of specialty packaging, primarily envelopes and tags used on tea bags.
12.5% Senior Subordinated Note due 2012 (D) $ 1,700,000 07/19/04 1,483,065 --
14.5% PIK Note due 2010 (D) $ 407,956 06/30/07 340,945 --
Limited Liability Company Unit Class A (B) 414,375 uts. 07/19/04 414,375 --
Limited Liability Company Unit Class B (B) 182,935 uts. 07/19/04 182,935 --
------------ ------------
2,421,320 --
------------ ------------
WAGGIN' TRAIN HOLDINGS LLC
A producer of premium quality meat dog treats.
14% Senior Subordinated Note due 2014 $ 2,208,561 11/15/07 2,162,840 2,252,732
Limited Liability Company Unit Class B (B) 423 uts. 11/15/07 422,652 480,720
Limited Liability Company Unit Class C (B) 423 uts. 11/15/07 -- 223,374
------------ ------------
2,585,492 2,956,826
------------ ------------
WALLS INDUSTRIES, INC.
A provider of branded workwear and sporting goods apparel.
Limited Partnership Interest (B) 0.40% int. 07/12/04 3,728 --
Common Stock (B) 4,028 shs. 12/21/07 -- --
------------ ------------
3,728 --
------------ ------------
WELLBORN FOREST HOLDING CO.
A manufacturer of semi-custom kitchen and bath cabinetry.
12.13% Senior Subordinated Note due 2014 $ 1,721,250 11/30/06 1,621,285 1,463,063
Common Stock (B) 191 shs. 11/30/06 191,250 --
Warrant, exercisable until 2014, to purchase
common stock at $.01 per share (B) 95 shs. 11/30/06 86,493 --
------------ ------------
1,899,028 1,463,063
------------ ------------
* 09/24/04 and 12/22/06.
--------------------------------------------------------------------------------------------------------------------------------
25
MassMutual Corporate Investors
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)
September 30, 2009
(Unaudited)
Principal Amount
Shares, Units
or Ownership Acquisition
CORPORATE RESTRICTED SECURITIES:(A)(Continued) Percentage Date Cost Fair Value
------------ -------- ------------ ------------
WORKPLACE MEDIA HOLDING CO.
A direct marketer specializing in providing advertisers with access to consumers in the workplace.
13% Senior Subordinated Note due 2015 $ 1,159,196 05/14/07 $ 1,067,797 $ 1,071,105
Limited Partnership Interest (B) 23.16% int. 05/14/07 115,804 --
Warrant, exercisable until 2015, to purchase
common stock at $.02 per share (B) 88 shs. 05/14/07 83,462 --
------------ ------------
1,267,063 1,071,105
------------ ------------
XALOY SUPERIOR HOLDINGS, INC.
A provider of melt processing components and ancillary equipment for both plastic injection molding and extrusion applications.
15% Senior Subordinated Note due 2015 (D) $ 2,322,844 09/08/08 2,272,885 1,161,415
Common Stock (B) 283 shs. 09/08/08 283,333 --
------------ ------------
2,556,218 1,161,415
------------ ------------
TOTAL PRIVATE PLACEMENT INVESTMENTS (E) 211,005,945 179,958,275
------------ ------------
--------------------------------------------------------------------------------------------------------------------------------
26
MassMutual Corporate Investors
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)
September 30, 2009
(Unaudited)
Shares or
Interest Due Principal
CORPORATE RESTRICTED SECURITIES:(A)(Continued) Rate Date Amount Cost Fair Value
------- -------- ------------ ------------ ------------
RULE 144A SECURITIES - 5.05%:
BONDS - 5.01%
ACCO Brands Corporation 10.625% 03/15/15 $ 100,000 $ 98,502 $ 104,625
Affinia Group, Inc. 10.750 08/15/16 50,000 49,400 53,625
American Tire Distributor (C) 6.847 04/01/12 1,000,000 950,000 830,000
Appleton Papers, Inc. 11.250 12/15/15 303,000 300,000 245,809
Cenveo Corporation 10.500 08/15/16 100,000 100,000 94,000
Charter Communications Op LLC 8.000 04/30/12 1,350,000 1,152,250 1,373,625
Compucom Systems, Inc. 12.500 10/01/15 1,330,000 1,291,677 1,240,225
Douglas Dynamics LLC 7.750 01/15/12 1,010,000 954,635 868,600
G F S I, Inc. (C) 10.500 06/01/11 715,000 685,658 532,675
General Motors Acceptance Corporation 7.750 01/19/10 815,000 733,174 813,981
Gannett Company, Inc. 8.750 11/15/14 45,000 44,309 44,100
Gannett Company, Inc. 9.375 11/15/17 125,000 123,228 122,500
Great Atlantic & Pacific Tea Co. 11.375 08/01/15 75,000 73,075 75,938
H C A, Inc. 9.875 02/15/17 35,000 33,895 37,275
Harrah's Operating Escrow LLC 11.250 06/01/17 325,000 313,012 326,625
Intergen NV 9.000 06/30/17 750,000 743,918 772,500
Interpublic Group of Companies 10.000 07/15/17 75,000 73,507 81,000
Markwest Energy Operating Co. 6.875 11/01/14 70,000 55,305 65,450
MGM Mirage, Inc. 10.375 05/15/14 45,000 43,804 48,038
MGM Mirage, Inc. 11.125 11/15/17 75,000 73,059 81,938
Newpage Corporation 11.375 12/31/14 725,000 709,598 706,875
Packaging Dynamics Corporation of America 10.000 05/01/16 1,200,000 1,194,960 543,000
RailAmerica, Inc. 9.250 07/01/17 300,000 288,049 314,250
SandRidge Energy, Inc. 8.000 06/01/18 360,000 364,141 346,500
Solo Cup Co. 10.500 11/01/13 55,000 53,900 58,300
Speedway Motorsports, Inc. 8.750 06/01/16 70,000 67,864 72,800
Tunica-Biloxi Gaming Authority 9.000 11/15/15 1,075,000 1,100,308 967,500
United Rentals, Inc. 10.875 06/15/16 125,000 121,412 133,750
------------ ------------
TOTAL BONDS 11,792,640 10,955,504
------------ ------------
CONVERTIBLE PREFERRED STOCK - 0.00%
ETEX Corporation (B) 777 716 --
------------ ------------
TOTAL CONVERTIBLE PREFERRED STOCK 716 --
------------ ------------
----------------------------------------------------------------------------------------------------------------
27
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)
September 30, 2009
(Unaudited)
CORPORATE RESTRICTED SECURITIES:(A)(Continued) Shares Cost Market Value
------------ ------------ ------------
PREFERRED STOCK - 0.04%
Preferred Blocker, Inc. 143 $ 45,009 $ 83,159
TherOX, Inc. (B) 103 4,131 --
------------ ------------
TOTAL PREFERRED STOCK 49,140 83,159
------------ ------------
COMMON STOCK - 0.00%
Touchstone Health Partnership (B) 1,168 4,254 --
------------ ------------
TOTAL COMMON STOCK 4,254 --
------------ ------------
TOTAL RULE 144A SECURITIES 11,846,750 11,038,663
------------ ------------
TOTAL CORPORATE RESTRICTED SECURITIES $222,852,695 $190,996,938
------------ ------------
----------------------------------------------------------------------------------------------------------------
28
MassMutual Corporate Investors
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)
September 30, 2009
(Unaudited)
Interest Due Principal Market
CORPORATE PUBLIC SECURITIES - 22.50%: (A) Rate Date Amount Cost Value
------- -------- ------------ ------------ ------------
BONDS - 20.96%
A M C Entertainment, Inc. 8.750% 02/01/16 $ 750,000 $ 732,204 $ 774,375
A M C Entertainment, Inc. 11.000 02/01/16 1,315,000 1,321,452 1,400,475
Activant Solutions, Inc. 9.500 05/01/16 150,000 150,000 134,250
Aramark Corporation (C) 3.983 02/01/15 200,000 200,000 173,500
Aramark Corporation 8.500 02/01/15 500,000 502,146 504,375
Bally Total Fitness Holdings Corporation (F) 14.000 10/01/13 104,062 74,053 10
Basic Energy Services 7.125 04/15/16 225,000 225,000 176,625
Berry Plastics Corporation (C) 5.259 02/15/15 500,000 476,017 460,000
Brigham Exploration Co. 9.625 05/01/14 1,200,000 1,167,903 1,062,000
Cenveo Corporation 7.875 12/01/13 1,300,000 1,192,500 1,043,250
Chaparral Energy, Inc. 8.875 02/01/17 1,500,000 1,491,780 1,207,500
Cincinnati Bell, Inc. 7.000 02/15/15 900,000 645,750 873,000
Community Health Systems, Inc. 8.875 07/15/15 1,200,000 1,169,415 1,230,000
Corrections Corporation of America 7.750 06/01/17 150,000 145,802 154,875
Denbury Resources, Inc. 9.750 03/01/16 50,000 46,637 53,125
Dynegy Holdings, Inc. 7.750 06/01/19 830,000 564,400 707,575
El Paso Corporation 12.000 12/12/13 55,000 49,608 62,838
Ford Motor Credit Co. 7.500 08/01/12 100,000 91,962 96,017
Ford Motor Credit Co. 8.000 06/01/14 275,000 228,020 264,000
Gencorp, Inc. 9.500 08/15/13 259,000 259,000 207,200
Goodyear Tire & Rubber Co. 10.500 05/15/16 100,000 96,004 108,500
Graham Packaging Corporation 8.500 10/15/12 280,000 268,800 282,800
Great Lakes Dredge & Dock Corporation 7.750 12/15/13 1,000,000 948,750 981,250
Hawker Beechcraft Acquisition Co. 9.750 04/01/17 1,000,000 1,008,223 610,000
Hughes Network Systems 9.500 04/15/14 1,325,000 1,344,291 1,331,625
Inergy LP 8.250 03/01/16 470,000 480,310 472,350
Intelsat Bermuda Ltd. 9.250 06/15/16 1,365,000 1,409,184 1,341,113
Interline Brands, Inc. 8.125 06/15/14 1,300,000 1,291,107 1,274,000
Iron Mountain, Inc. 8.375 08/15/21 45,000 44,831 46,519
Kar Holdings, Inc. 8.750 05/01/14 50,000 50,000 49,500
Leucadia National Corporation 7.000 08/15/13 450,000 450,642 455,063
Liberty Media Corporation 5.700 05/15/13 1,000,000 951,610 947,500
Manitowoc Company, Inc. 7.125 11/01/13 200,000 200,000 173,000
Mariner Energy, Inc. 11.750 06/30/16 160,000 155,487 172,400
Markwest Energy Operating Co. 6.875 11/01/14 950,000 930,563 893,000
Markwest Energy Operating Co. 8.750 04/15/18 125,000 123,979 124,375
N R G Energy, Inc. 8.500 06/15/19 200,000 196,696 200,750
----------------------------------------------------------------------------------------------------------------
29
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)
September 30, 2009
(Unaudited)
Interest Due Principal Market
CORPORATE PUBLIC SECURITIES: (A) (Continued) Rate Date Amount Cost Value
------- -------- ------------ ------------ ------------
Newark Group, Inc. (F) 9.750% 03/15/14 $ 850,000 $ 796,863 $ 68,000
Nortek, Inc. 10.000 12/01/13 175,000 173,175 178,500
North American Energy Partners 8.750 12/01/11 1,165,000 1,171,496 1,141,700
Owens Corning, Inc. 9.000 06/15/19 55,000 54,112 59,400
Pliant Corporation 11.125 12/15/09 550,000 539,000 6,188
Pliant Corporation (C) 11.850 12/15/09 1,111,500 1,081,149 957,279
Polypore, Inc. 8.750 05/15/12 1,460,000 1,410,050 1,423,500
Pregis Corporation 12.375 10/15/13 1,000,000 981,490 945,000
Quebecor Media, Inc. 7.750 03/15/16 1,050,000 978,235 1,039,500
Rental Service Corporation 9.500 12/01/14 500,000 484,183 482,500
Rock-Tenn Co. 9.250 03/15/16 1,075,000 1,112,376 1,150,250
Scholastic Corporation 5.000 04/15/13 1,500,000 1,278,750 1,282,500
Seneca Gaming Corporation 7.250 05/01/12 500,000 477,500 462,500
Sheridan Acquisition Corporation 10.250 08/15/11 375,000 370,001 315,000
Stanadyne Corporation 10.000 08/15/14 1,500,000 1,500,000 1,260,000
Stewart & Stevenson LLC 10.000 07/15/14 1,465,000 1,493,942 1,347,800
T X U Energy Company LLC 10.250 11/01/15 1,250,000 1,260,978 900,000
Teck Resources Ltd. 9.750 05/15/14 50,000 47,789 55,000
Teck Resources Ltd. 10.250 05/15/16 75,000 71,160 84,750
Teck Resources Ltd. 10.750 05/15/19 65,000 61,767 75,563
Tekni-Plex, Inc. 8.750 11/15/13 650,000 653,986 474,500
Tenneco, Inc. 8.125 11/15/15 1,100,000 540,000 1,067,000
Texas Industries, Inc. 7.250 07/15/13 70,000 70,000 67,200
Ticketmaster Entertainment, Inc. 10.750 07/28/16 500,000 500,000 512,500
Time Warner Telecom Holdings 9.250 02/15/14 1,000,000 1,007,905 1,030,000
Titan International, Inc. 8.000 01/15/12 1,070,000 1,062,100 1,035,225
Transdigm, Inc. 7.750 07/15/14 500,000 503,095 496,250
Trimas Corporation 9.875 06/15/12 1,073,000 982,375 968,383
Tube City IMS Corporation 9.750 02/01/15 1,500,000 1,483,204 1,215,000
United Components, Inc. 9.375 06/15/13 1,080,000 1,080,179 866,700
United Rentals, Inc. 6.500 02/15/12 1,125,000 815,625 1,127,813
Videotron, Ltd. 9.125 04/15/18 40,000 39,373 43,300
Virgin Media Finance PLC 9.125 08/15/16 1,380,000 1,411,654 1,417,950
Vought Aircraft Industries 8.000 07/15/11 1,150,000 1,115,399 1,138,500
Waste Services, Inc. 9.500 04/15/14 1,100,000 1,116,864 1,094,500
------------ ------------
TOTAL BONDS 48,409,901 45,838,486
------------ ------------
----------------------------------------------------------------------------------------------------------------
30
MassMutual Corporate Investors
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)
September 30, 2009
(Unaudited)
Shares or
Interest Due Principal Market
CORPORATE PUBLIC SECURITIES: (A) (Continued) Rate Date Amount Cost Value
------- -------- ------------ ------------ ------------
COMMON STOCK - 1.50%
A123 Systems Inc. 650 $ 8,775 $ 13,858
Chase Packaging Corporation (B) 9,541 -- 1,431
CKX, Inc. (B) 97,500 784,875 654,225
Directed Electronics, Inc. (B) 368,560 1,856,534 154,795
El Paso Corporation (B) 65,000 808,362 670,800
EnerNOC, Inc. (B) 37,361 994,619 1,238,891
ITC^DeltaCom, Inc. (B) 178,666 1,563,328 230,479
Intrepid Potash, Inc. (B) 365 11,680 8,610
Supreme Industries, Inc. 125,116 267,320 305,280
------------ ------------
TOTAL COMMON STOCK 6,295,493 3,278,369
------------ ------------
CONVERTIBLE BONDS - 0.04%
Citadel Broadcasting Corporation 4.000% 02/15/11 $ 583,000 452,554 87,450
------------ ------------
TOTAL CONVERTIBLE BONDS 452,554 87,450
------------ ------------
TOTAL CORPORATE PUBLIC SECURITIES $ 55,157,948 $ 49,204,305
------------ ------------
TOTAL INVESTMENTS 109.82% $278,010,643 $240,201,243
============ ------------
Other Assets 4.50 9,855,759
Liabilities (14.32) (31,324,219)
------ ------------
TOTAL NET ASSETS 100.00% $218,732,783
====== ============
(A) In each of the convertible note, warrant, convertible preferred and common stock investments, the issuer has
agreed to provide certain registration rights.
(B) Non-income producing security.
(C) Variable rate security; rate indicated is as of 09/30/09.
(D) Defaulted security; interest not accrued.
(E) Illiquid securities. At September 30, 2009, the value of these securities amounted to $179,958,275 or 82.27%
of net assets.
(F) Security valued at fair value using methods determined in good faith by or under the direction of the Board
of Trustees.
PIK - Payment-in-kind
----------------------------------------------------------------------------------------------------------------
31
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)
September 30, 2009
(Unaudited)
Fair Value/ Fair Value/
INDUSTRY CLASSIFICATION: Market Value Market Value
-------------- --------------
AEROSPACE - 3.69% BUILDINGS & REAL ESTATE - 1.11%
Gencorp, Inc. $ 207,200 K W P I Holdings Corporation $ 2,074,824
Hughes Network Systems 1,331,625 Owens Corning, Inc. 59,400
P A S Holdco LLC 3,355,618 Texas Industries, Inc. 67,200
Transdigm, Inc. 496,250 TruStile Doors, Inc. 227,752
Visioneering, Inc. 1,541,725 --------------
Vought Aircraft Industries 1,138,500 2,429,176
-------------- --------------
8,070,918 CHEMICAL, PLASTICS & RUBBER - 0.35%
-------------- Capital Specialty Plastics, Inc. 771,524
AUTOMOBILE - 4.69% --------------
American Tire Distributor 830,000 CONSUMER PRODUCTS - 7.31%
Fuel Systems Holding Corporation -- Aero Holdings, Inc. 3,286,241
Goodyear Tire & Rubber Co. 108,500 Bravo Sports Holding Corporation 2,330,806
Jason, Inc. 481,844 G F S I, Inc. 532,675
Nyloncraft, Inc. 609,375 K N B Holdings Corporation 2,159,043
Ontario Drive & Gear Ltd. 529,964 Kar Holdings, Inc. 49,500
Qualis Automotive LLC 1,912,132 Momentum Holding Co. 487,496
Tenneco, Inc. 1,067,000 R A J Manufacturing Holdings LLC 2,479,698
Titan International, Inc. 1,035,225 Royal Baths Manufacturing Company 1,025,270
Transtar Holding Company 2,809,835 The Tranzonic Companies 3,638,809
United Components, Inc. 866,700 Walls Industries, Inc. --
-------------- --------------
10,250,575 15,989,538
-------------- --------------
BEVERAGE, DRUG & FOOD - 4.46% CONTAINERS, PACKAGING & GLASS - 4.47%
Aramark Corporation 677,875 Berry Plastics Corporation 460,000
Golden County Foods Holding, Inc. 1,843,623 Chase Packaging Corporation 1,431
Hospitality Mints Holding Company 2,182,115 Flutes, Inc. 229,596
Specialty Commodities, Inc. 2,629,848 Graham Packaging Corporation 282,800
Vitality Foodservice, Inc. 2,428,007 Maverick Acquisition Company 621,020
-------------- P I I Holding Corporation 2,893,019
9,761,468 Packaging Dynamics Corporation of America 543,000
-------------- Paradigm Packaging, Inc. 2,291,461
BROADCASTING & ENTERTAINMENT - 2.61% Pliant Corporation 963,467
Charter Communications Op LLC 1,373,625 Pregis Corporation 945,000
Citadel Broadcasting Corporation 87,450 Solo Cup Co. 58,300
CKX, Inc. 654,225 Tekni-Plex, Inc. 474,500
Interpublic Group of Companies 81,000 Vitex Packaging Group, Inc. --
Liberty Media Corporation 947,500 --------------
Speedway Motorsports, Inc. 72,800 9,763,594
Virgin Media Finance PLC 1,417,950 --------------
Workplace Media Holding Co. 1,071,105
--------------
5,705,655
--------------
------------------------------------------------------------------------------------------------------------------------------------
32
MassMutual Corporate Investors
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)
September 30, 2009
(Unaudited)
Fair Value/ Fair Value/
INDUSTRY CLASSIFICATION:(Continued) Market Value Market Value
-------------- --------------
DISTRIBUTION - 1.85% DIVERSIFIED/CONGLOMERATE, SERVICE - 10.49%
Duncan Systems, Inc. $ 1,604,845 ACCO Brands Corporation $ 104,625
F C X Holdings Corporation 2,442,908 A W X Holdings Corporation 1,369,802
-------------- Advanced Technologies Holdings 2,665,509
4,047,753 Affinia Group, Inc. 53,625
-------------- Apex Analytix Holding Corporation 1,969,920
DIVERSIFIED/CONGLOMERATE, Clough, Harbour, and Associates 2,735,055
MANUFACTURING - 8.70% Corrections Corporation of America 154,875
A H C Holding Company, Inc. 2,723,231 Crane Rental Corporation 2,621,196
Activant Solutions, Inc. 134,250 Diversco, Inc./DHI Holdings, Inc. 1,319,430
Arrow Tru-Line Holdings, Inc. 1,383,511 Dwyer Group, Inc. 1,478,896
C D N T, Inc. 1,386,047 Fowler Holding, Inc. --
Douglas Dynamics LLC 868,600 Insurance Claims Management, Inc. 147,431
Great Lakes Dredge & Dock Corporation 981,250 Interline Brands, Inc. 1,274,000
K P I Holdings, Inc. 1,639,495 Iron Mountain, Inc. 46,519
MEGTEC Holdings, Inc. 2,240,579 Mail Communications Group, Inc. 1,353,029
Milwaukee Gear Company 2,572,879 Nesco Holdings Corporation 2,985,400
Nortek, Inc. 178,500 Northwest Mailing Services, Inc. 2,627,877
Polypore, Inc. 1,423,500 Pearlman Enterprises, Inc. --
Postle Aluminum Company LLC 617,353 Videotron, Ltd. 43,300
Trimas Corporation 968,383 --------------
Truck Bodies & Equipment International 737,251 22,950,489
Xaloy Superior Holdings, Inc. 1,161,415 --------------
-------------- ELECTRONICS - 0.63%
19,016,244 A123 Systems, Inc. 13,858
-------------- Connecticut Electric, Inc. 1,196,977
Directed Electronics, Inc. 154,795
--------------
1,365,630
--------------
FARMING & AGRICULTURE - 1.35%
Waggin' Train Holdings LLC 2,956,826
--------------
FINANCIAL SERVICES - 1.06%
Ford Motor Credit Co. 360,017
General Motors Acceptance Corporation 813,981
Hawker Beechcraft Acquisition Co. 610,000
Highgate Capital LLC --
Leucadia National Corporation 455,063
Preferred Blocker, Inc. 83,159
--------------
2,322,220
--------------
------------------------------------------------------------------------------------------------------------------------------------
33
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)
September 30, 2009
(Unaudited)
Fair Value/ Fair Value/
INDUSTRY CLASSIFICATION:(Continued) Market Value Market Value
-------------- --------------
HEALTHCARE, EDUCATION & CHILDCARE - 6.42% MACHINERY - 10.27%
A T I Acquisition Company $ 5,020,272 A S A P Industries LLC $ 1,302,029
American Hospice Management Holding LLC 3,891,539 Davis-Standard LLC 3,035,014
Community Health Systems, Inc. 1,230,000 E S P Holdco, Inc. 2,342,629
F H S Holdings LLC 1,195,313 Integration Technology Systems, Inc. --
H C A, Inc. 37,275 K-Tek Holdings Corporation 2,773,592
Synteract Holdings Corporation 2,673,061 M V I Holding, Inc. 1,379,108
-------------- Manitowoc Company, Inc. 173,000
14,047,460 Navis Global 270,280
-------------- NetShape Technologies, Inc. 1,208,182
HOME & OFFICE FURNISHINGS, HOUSEWARES, AND Pacific Consolidated Holdings LLC 1,276,436
DURABLE CONSUMER PRODUCTS - 9.26% Power Services Holding Company 2,693,066
Connor Sport Court International, Inc. 2,589,843 R E I Delaware Holding, Inc. 2,637,205
H M Holding Company -- Safety Speed Cut Manufacturing Company, Inc. 462,827
Home Decor Holding Company 2,251,933 Stanadyne Corporation 1,260,000
Justrite Manufacturing Acquisition Co. 1,776,806 Stewart & Stevenson LLC 1,347,800
K H O F Holdings, Inc. 2,638,098 Supreme Industries, Inc. 305,280
Monessen Holding Corporation 2,583,800 --------------
Stanton Carpet Holding Co. 2,120,187 22,466,448
Transpac Holdings Company 1,507,055 --------------
U M A Enterprises, Inc. 1,729,348 MEDICAL DEVICES/BIOTECH - 3.58%
U-Line Corporation 1,599,785 Coeur, Inc. 1,308,402
Wellborn Forest Holding Co. 1,463,063 E X C Acquisition Corporation 265,386
-------------- ETEX Corporation --
20,259,918 MedSystems Holdings LLC 1,396,212
-------------- MicroGroup, Inc. 3,582,945
LEISURE, AMUSEMENT, ENTERTAINMENT - 3.37% OakRiver Technology, Inc. 1,280,664
A M C Entertainment, Inc. 2,174,850 --------------
Bally Total Fitness Holding Corporation 10 7,833,609
Harrah's Operating Escrow LLC 326,625 --------------
MGM Mirage, Inc. 129,976 MINING, STEEL, IRON & NON PRECIOUS
Savage Sports Holding, Inc. 2,790,696 METALS - 1.86%
Seneca Gaming Corporation 462,500 T H I Acquisition, Inc. 2,624,861
Ticketmaster Entertainment, Inc. 512,500 Teck Resources Ltd. 215,313
Tunica-Biloxi Gaming Authority 967,500 Tube City IMS Corporation 1,215,000
-------------- --------------
7,364,657 4,055,174
-------------- --------------
NATURAL RESOURCES - 1.64%
Appleton Papers, Inc. 245,809
Cenveo Corporation 1,137,250
Intrepid Potash, Inc. 8,610
Newpage Corporation 706,875
Rock-Tenn Co. 1,150,250
SandRidge Energy, Inc. 346,500
--------------
3,595,294
--------------
------------------------------------------------------------------------------------------------------------------------------------
34
MassMutual Corporate Investors
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)
September 30, 2009
(Unaudited)
Fair Value/ Fair Value/
INDUSTRY CLASSIFICATION:(Continued) Market Value Market Value
-------------- --------------
OIL & GAS - 3.52% TELECOMMUNICATIONS - 3.72%
Basic Energy Services $ 176,625 All Current Holding Company $ 1,390,501
Brigham Exploration Co. 1,062,000 Cincinnati Bell, Inc. 873,000
Chaparral Energy, Inc. 1,207,500 Intelsat Bermuda Ltd. 1,341,113
Denbury Resources, Inc. 53,125 ITC^DeltaCom, Inc. 230,479
International Offshore Services LLC 2,626,531 Telecorps Holdings, Inc. 3,282,325
Mariner Energy, Inc. 172,400 Time Warner Telecom Holdings 1,030,000
North American Energy Partners 1,141,700 --------------
Total E & S, Inc. 1,257,621 8,147,418
-------------- --------------
7,697,502 TRANSPORTATION - 2.09%
-------------- NABCO, Inc. 611,564
PHARMACEUTICALS - 1.25% RailAmerica, Inc. 314,250
CorePharma LLC 2,730,758 Tangent Rail Corporation 3,638,566
-------------- --------------
PUBLISHING/PRINTING - 1.31% 4,564,380
Gannett Company, Inc. 166,600 --------------
Newark Group, Inc. 68,000 UTILITIES - 2.23%
Quebecor Media, Inc. 1,039,500 Dynegy Holdings, Inc. 707,575
Scholastic Corporation 1,282,500 El Paso Corporation 733,638
Sheridan Acquisition Corporation 315,000 Inergy LP 472,350
-------------- Intergen NV 772,500
2,871,600 Markwest Energy Operating Co. 1,082,825
-------------- N R G Energy, Inc. 200,750
RETAIL STORES - 0.92% T X U Energy Company LLC 900,000
Great Atlantic & Pacific Tea Co. 75,938 --------------
Olympic Sales, Inc. 199,361 4,869,638
Rental Service Corporation 482,500 --------------
United Rentals, Inc. 1,261,563 WASTE MANAGEMENT / POLLUTION - 2.41%
-------------- Terra Renewal LLC 2,287,121
2,019,362 Torrent Group Holdings, Inc. 1,903,170
-------------- Waste Services, Inc. 1,094,500
TECHNOLOGY - 3.20% --------------
Compucom Systems, Inc. 1,240,225 5,284,791
EnerNOC, Inc. 1,238,891 --------------
Sencore Holding Company 1,644,360
Smart Source Holdings LLC 2,868,148
-------------- TOTAL INVESTMENTS - 109.82% $ 240,201,243
6,991,624 ==============
--------------
See Notes to Consolidated Financial Statements
------------------------------------------------------------------------------------------------------------------------------------
35
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
1. HISTORY
MassMutual Corporate Investors (the "Trust") commenced operations in 1971 as
a Delaware corporation. Pursuant to an Agreement and Plan of Reorganization
dated November 14, 1985, approved by shareholders, the Trust was reorganized
as a Massachusetts business trust under the laws of the Commonwealth of
Massachusetts, effective November 28, 1985.
The Trust is a diversified closed-end management investment company. Babson
Capital Management LLC ("Babson Capital"), a wholly-owned indirect subsidiary
of Massachusetts Mutual Life Insurance Company ("MassMutual"), acts as its
investment adviser. The Trust's investment objective is to maintain a
portfolio of securities providing a fixed yield and at the same time offering
an opportunity for capital gains. The Trust's principal investments are
privately placed, below-investment grade, long-term debt obligations with
equity features such as common stock, warrants, conversion rights, or other
equity features and, occasionally, preferred stocks. The Trust typically
purchases these investments, which are not publicly tradable, directly from
their issuers in private placement transactions. These investments are
typically mezzanine debt instruments with accompanying private equity
securities made to small or middle market companies. In addition, the Trust
may temporarily invest, subject to certain limitations, in marketable
investment grade debt securities, other marketable debt securities (including
high yield securities) and marketable common stocks. Below-investment grade
or high yield securities have predominantly speculative characteristics with
respect to the capacity of the issuer to pay interest and repay capital.
On January 27,1998, the Board of Trustees authorized the formation of a
wholly-owned subsidiary of the Trust ("MMCI Subsidiary Trust") for the
purpose of holding certain investments. The results of MMCI Subsidiary Trust
are consolidated in the accompanying financial statements. Footnote 2.D below
discusses the federal tax consequences of the MMCI Subsidiary Trust.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies followed
consistently by the Trust in the preparation of its consolidated financial
statements in conformity with accounting principles generally accepted in the
United States of America.
A. VALUATION OF INVESTMENTS:
Valuation of a security in the Trust's portfolio is made on the basis of
market price whenever market quotations are readily available and all
securities of the same class held by the Trust can be readily sold in such
market.
Nearly all securities which are acquired by the Trust directly from the
issuers and shares into which such securities may be converted or which may
be purchased on the exercise of warrants attached to such securities will be
subject to legal or contractual delays in, or restrictions on, resale and
will therefore be "restricted securities." Generally speaking, as contrasted
with open-market sales of unrestricted securities which may be effected
immediately if the market is adequate, restricted securities can be sold only
in a public offering for which a registration statement is in effect under
the Securities Act of 1933, as amended (the "1933 Act"), or pursuant to a
transaction that is exempt from registration under the 1933 Act.
The value of restricted securities, and of any other assets for which there
are no reliable market quotations, is the fair value as determined in good
faith by the Trust's Board of Trustees (the "Trustees"). Each restricted
security is valued by the Trustees at the time of its acquisition and at
least quarterly thereafter. The Trustees have established guidelines to aid
in the valuation of each security. Generally, restricted securities are
initially valued at cost or less at the time of acquisition by the Trust.
Values greater or less than cost are used thereafter for restricted
securities in appropriate circumstances. Among the factors ordinarily
considered are the existence of restrictions upon the sale of a security held
by the Trust; an estimate of the existence and the extent of a market for the
security; the extent of any discount at which the security was acquired; the
estimated period of time during which the security will not be freely
marketable; the estimated expenses of registering or otherwise qualifying the
security for public sale; estimated underwriting commissions if underwriting
would be required to effect a sale; in the case of a convertible security,
whether or not it would trade on the basis of its stock equivalent; in the
case of a debt obligation which would trade independently of any equity
equivalent, the current yields on comparable securities; the estimated amount
of the floating supply of such securities available for purchase; the
proportion of the issue held by the Trust; changes in the financial condition
and prospects of the issuer; the existence of merger proposals or tender
offers affecting the issuer; and any other factors affecting fair value, all
in accordance with the Investment Company Act of 1940, as amended (the "1940
Act"). In making valuations, opinions of counsel may be relied upon as to
whether or not securities are restricted securities and as to the legal
requirements for public sale.
When market quotations are readily available for unrestricted securities of
an issuer, restricted securities of the same class are generally valued at a
discount from the market price of such unrestricted securities. The Trustees,
however, consider all factors in fixing any discount, including the filing of
a registration statement for such securities under the 1933 Act and any other
developments which are likely to increase the probability that the securities
may be publicly sold by the Trust without restriction.
The Trustees meet at least once each quarter to approve the value of the
Trust's portfolio securities as of the close of business on the last business
day of the preceding quarter. This valuation requires the approval of a
majority of the Trustees of the Trust,
--------------------------------------------------------------------------------
36
MassMutual Corporate Investors
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(CONTINUED)
(UNAUDITED)
including a majority of the Trustees who are not interested persons of the
Trust or of Babson Capital. In making valuations, the Trustees will consider
reports by Babson Capital analyzing each portfolio security in accordance
with the relevant factors referred to above. Babson Capital has agreed to
provide such reports to the Trust at least quarterly.
The consolidated financial statements include private placement restricted
securities valued at $179,958,275 (82.27% of net assets) as of September 30,
2009 whose values have been estimated by the Trustees in the absence of
readily ascertainable market values. Due to the inherent uncertainty of
valuation, those estimated values may differ significantly from the values
that would have been used had a ready market for the securities existed, and
the differences could be material.
The values for Rule 144A restricted securities and corporate public
securities are stated at the last reported sales price or at prices based
upon quotations obtained from brokers and dealers as of September 30, 2009,
subject to discount where appropriate, and are approved by the Trustees.
Short-term securities with more than sixty days to maturity are valued at
fair value and short-term securities having a maturity of sixty days or less
are valued at amortized cost, which approximates market value.
Effective January 1, 2008, the Trust adopted FASB Statement of Financial
Accounting Standards No. 157, "Fair Value Measurements" ("FAS 157"). FAS 157
clarifies the definition of fair value, establishes a framework for measuring
fair values and requires additional disclosures about the use of fair value
measurements. FAS 157 requires companies to provide expanded information
about the assets and liabilities measured at fair value and the potential
effect of these fair valuations on an entity's financial performance.
Various inputs are used in determining the value of the Trust's investments.
Using the hierarchy established under FAS 157, these inputs are summarized in
the three broad levels listed below:
Level 1: quoted prices in active markets for identical securities
Level 2: other significant observable inputs (including quoted prices
for similar securities, interest rates, prepayments speeds, credit
risk, etc.)
Level 3: significant unobservable inputs (including the Trust's own
assumptions in determining the fair value of investments)
The inputs and methodology used for valuing securities are not necessarily an
indication of the risk associated with investing in those securities.
The following is a summary of the inputs used to value the Trust's net assets
as of September 30, 2009:
ASSETS TOTAL LEVEL 1 LEVEL 2 LEVEL 3
-----------------------------------------------------------------------------
Restricted Securities $190,996,938 $ -- $11,038,663 $179,958,275
Public Securities 49,204,305 3,278,369 45,857,926 68,010
-----------------------------------------------------------------------------
TOTAL $240,201,243 $3,278,369 $56,896,589 $180,026,285
Following is a reconciliation of Level 3 assets for which significant
unobservable inputs were used to determine fair value:
RESTRICTED PUBLIC SHORT-TERM
ASSETS SECURITIES SECURITIES SECURITIES TOTAL
-----------------------------------------------------------------------------
Beginning balance
at 12/31/2008 $182,799,290 $ 260 $ -- $182,799,550
Total gains or losses
(realized/unrealized)
included in earnings* (12,424,849) (13,000) -- (12,437,849)
Purchases, sales,
issuances &
settlements (net) 9,583,834 -- -- 9,583,834
Transfers in and /
or out of Level 3 -- 80,750 -- 80,750
-----------------------------------------------------------------------------
ENDING BALANCE
AT 09/30/2009 $179,958,275 $68,010 $ -- $180,026,285
* The amount of net losses for the period included in earnings attributable
to the change in unrealized gains or losses relating to Level 3 assets still
held at 09/30/09 is $(10,470,642).
B. ACCOUNTING FOR INVESTMENTS:
Investment transactions are accounted for on the trade date. Dividend income
is recorded on the ex-dividend date. Interest income is recorded on the
accrual basis, including the amortization of premiums and accretion of
discounts on bonds held using the yield-to-maturity method. The Trust does
not accrue income when payment is delinquent and when management believes
payment is questionable.
Realized gains and losses on investment transactions and unrealized
appreciation and depreciation of investments are reported for financial
statement and federal income tax purposes on the identified cost method.
C. USE OF ESTIMATES:
The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America requires
management to make estimates and assumptions that affect the reported amounts
of assets and liabilities and disclosure of contingent assets and liabilities
at the date of the financial statements and the reported amounts of revenues
and expenses during the reporting period. Actual results could differ from
those estimates.
--------------------------------------------------------------------------------
37
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
D. FEDERAL INCOME TAXES:
The Trust has elected to be taxed as a "regulated investment company" under
the Internal Revenue Code, and intends to maintain this qualification and to
distribute substantially all of its net taxable income to its shareholders.
In any year when net long-term capital gains are realized by the Trust,
management, after evaluating the prevailing economic conditions, will
recommend that the Trustees either designate the net realized long-term gains
as undistributed and pay the federal capital gains taxes thereon or
distribute all or a portion of such net gains.
The Trust is taxed as a regulated investment company and is therefore limited
as to the amount of non-qualified income that it may receive as the result of
operating a trade or business, e.g. the Trust's PRO RATA share of income
allocable to the Trust by a partnership operating company. The Trust's
violation of this limitation could result in the loss of its status as a
regulated investment company, thereby subjecting all of its net income and
capital gains to corporate taxes prior to distribution to its shareholders.
The Trust, from time-to-time, identifies investment opportunities in the
securities of entities that could cause such trade or business income to be
allocable to the Trust. The MMCI Subsidiary Trust (described in Footnote 1,
above) was formed in order to allow investment in such securities without
adversely affecting the Trust's status as a regulated investment company.
The MMCI Subsidiary Trust is not taxed as a regulated investment company.
Accordingly, prior to the Trust receiving any distributions from the MMCI
Subsidiary Trust, all of the MMCI Subsidiary Trust's taxable income and
realized gains, including non-qualified income and realized gains, is subject
to taxation at prevailing corporate tax rates. For the nine months ended
September 30, 2009, the MMCI Subsidiary Trust has accrued income tax expense
of $11,170.
In June 2006, the Financial Accounting Standards Board ("FASB") issued FASB
Interpretation No. 48, ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES -- AN
INTERPRETATION OF FASB STATEMENT NO. 109 ("FIN 48"). Management has analyzed
the Trust's tax positions taken on federal income tax returns for all open
tax years and has concluded that as of September 30, 2009, no provision for
uncertain income tax positions would be required in the Trust's financial
statements. The Trust's federal and state income and federal excise tax
returns for tax years for which the applicable statutes of limitations have
not expired are subject to examination by the Internal Revenue Service and
state departments of revenue.
E. DISTRIBUTIONS TO SHAREHOLDERS:
The Trust records distributions to shareholders from net investment income
and net realized gains, if any, on the exdividend date. The Trust's net
investment income dividend is declared four times per year, in April, July,
October, and December. The Trust's net realized capital gain distribution, if
any, is declared in December.
F. EXPENSE REDUCTION:
Citibank, N.A. ("Citibank") serves as custodian to the Trust. Pursuant to the
custodian agreement, Citibank receives a fee reduced by credits on cash
balances the Trust maintains with Citibank. All credit balances, if any, used
to reduce the Trust's custodian fees are reported as fees paid indirectly on
the Statement of Operations. For the nine months ended September 30, 2009,
there were no credit balances used to reduce custodian fees.
3. INVESTMENT SERVICES CONTRACT
A. SERVICES:
Under an Investment Services Contract (the "Contract") with the Trust, Babson
Capital agrees to use its best efforts to present to the Trust a continuing
and suitable investment program consistent with the investment objectives and
policies of the Trust. Babson Capital represents the Trust in any
negotiations with issuers, investment banking firms, securities brokers or
dealers and other institutions or investors relating to the Trust's
investments. Under the Contract, Babson Capital also provides administration
of the day-to-day operations of the Trust and provides the Trust with office
space and office equipment, accounting and bookkeeping services, and
necessary executive, clerical and secretarial personnel for the performance
of the foregoing services.
B. FEE:
For its services under the Contract, Babson Capital is paid a quarterly
investment advisory fee of 0.3125% of the net asset value of the Trust as of
the last business day of each fiscal quarter, which is approximately equal to
1.25% annually. A majority of the Trustees, including a majority of the
Trustees who are not interested persons of the Trust or of Babson Capital,
approve the valuation of the Trust's net assets as of such day.
4. SENIOR SECURED INDEBTEDNESS
A. NOTE PAYABLE:
MassMutual holds the Trust's $30,000,000 Senior Fixed Rate Convertible Note
(the "Note") issued by the Trust on November 15, 2007. The Note, is due
November 15, 2017 and accrues interest at 5.28% per annum. MassMutual, at its
option, can convert the principal amount of the Note into common shares. The
dollar amount of principal would be converted into an equivalent dollar
amount of common shares based upon the average price of the common shares for
ten business days prior to the notice of conversion. For the nine months
ended September 30, 2009, the Trust incurred total interest expense on the
Note of $1,188,000.
The Trust may redeem the Note, in whole or in part, at the principal amount
proposed to be redeemed together with the accrued and unpaid interest thereon
through the redemption date plus a Make Whole Premium. The Make Whole Premium
equals the excess of (i) the present value of the scheduled
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38
MassMutual Corporate Investors
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(CONTINUED)
(UNAUDITED)
payments of principal and interest which the Trust would have paid but for
the proposed redemption, discounted at the rate of interest of U.S. Treasury
obligations whose maturity approximates that of the Note plus 0.50% over (ii)
the principal of the Note proposed to be redeemed.
5. PURCHASES AND SALES OF INVESTMENTS
FOR THE NINE
MONTHS ENDED
09/30/2009
COST PROCEEDS
OF FROM
INVESTMENTS SALES OR
ACQUIRED MATURITIES
-------- ----------
Corporate restricted securities $24,818,622 $14,303,339
Corporate public securities 3,119,023 11,041,778
The aggregate cost of investments is substantially the same for financial
reporting and federal income tax purposes as of September 30, 2009. The net
unrealized depreciation of investments for financial reporting and federal
tax purposes as of September 30, 2009 is $37,809,400 and consists of
$21,170,427 appreciation and $58,979,827 depreciation.
6. QUARTERLY RESULTS OF INVESTMENT OPERATIONS
MARCH 31, 2009
AMOUNT PER SHARE
------ ---------
Investment income $ 6,499,219
Net investment income 5,338,941 $ 0.573
Net realized and unrealized
loss on investments (net of taxes) (13,236,961) (1.420)
JUNE 30, 2009
AMOUNT PER SHARE
------ ---------
Investment income $ 5,866,032
Net investment income 4,582,972 $ 0.492
Net realized and unrealized
gain on investments (net of taxes) 12,423,184 1.333
SEPTEMBER 30, 2009
AMOUNT PER SHARE
------ ---------
Investment income $ 6,037,608
Net investment income 4,808,143 $ 0.515
Net realized and unrealized
gain on investments (net of taxes) 6,172,266 0.657
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MassMutual Corporate Investors
MEMBERS OF THE BOARD OF
TRUSTEES
Donald Glickman
Robert E. Joyal
William J. Barrett
Michael H. Brown*
Donald E. Benson*
Dr. Corine T. Norgaard*
Clifford M. Noreen
Martin T. Hart
Maleyne M. Syracuse
*Member of the Audit Committee
OFFICERS
Clifford M. Noreen
Chairman
Michael L. Klofas
President
James M. Roy
Vice President & Chief
Financial Officer
Patricia J. Walsh
Vice President, Secretary
& Chief Legal Officer
Jill A. Fields
Vice President
Michael P. Hermsen
Vice President
Mary Wilson Kibbe
Vice President
Richard E. Spencer, II
Vice President
Daniel J. Florence
Treasurer
John T. Davitt, Jr.
Comptroller
Melissa M. LaGrant
Chief Compliance Officer
DIVIDEND REINVESTMENT AND CASH PURCHASE PLAN
MassMutual Corporate Investors offers a Dividend Reinvestment and Share Purchase
Plan. The Plan provides a simple way for shareholders to add to their holdings
in the Trust through the receipt of dividend shares issued by the Trust or
through the investment of cash dividends in Trust shares purchased in the open
market. A shareholder may join the Plan by .lling out and mailing an
authorization card to Shareholder Financial Services, Inc., the Transfer Agent.
Participating shareholders will continue to participate until they notify the
Transfer Agent, in writing, of their desire to terminate participation. Unless a
shareholder elects to participate in the Plan, he or she will, in effect, have
elected to receive dividends and distributions in cash. Participating
shareholders may also make additional contributions to the Plan from their own
funds. Such contributions may be made by personal check or other means in an
amount not less than $10 nor more than $5,000 per quarter. Cash contributions
must be received by the Transfer Agent at least five days (but no more then 30
days) before the payment date of a dividend or distributions.
Whenever the Trust declares a dividend payable in cash or shares, the Transfer
Agent, acting on behalf of each participating shareholder, will take the
dividend in shares only if the net asset value is lower than the market price
plus an estimated brokerage commission as of the close of business on the
valuation day. The valuation day is the last day preceding the day of dividend
payment.
When the dividend is to be taken in shares, the number of shares to be received
is determined by dividing the cash dividend by the net asset value as of the
close of business on the valuation date or, if greater than net asset value, 95%
of the closing share price. If the net asset value of the shares is higher than
the market value plus an estimated commission, the Transfer Agent, consistent
with obtaining the best price and execution, will buy shares on the open market
at current prices promptly after the dividend payment date.
The reinvestment of dividends does not, in anyway, relieve participating
shareholders of any federal, state or local tax. For federal income tax
purposes, the amount reportable in respect of a dividend received in
newly-issued shares of the Trust will be the fair market value of the shares
received, which will be reportable as ordinary income and/or capital gains.
As compensation for its services, the Transfer Agent receives a fee of 5% of any
dividend and cash contribution (in no event in excess of $2.50 per distribution
per shareholder.)
Any questions regarding the Plan should be addressed to Shareholder Financial
Services, Inc., Agent for MassMutual Corporate Investors' Dividend Reinvestment
and Share Purchase Plan, P.O. Box 173673, Denver, CO 80217-3673. MassMutual
Corporate Investors
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Corporate Investors
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